CBN Raises Interest Rate To 14%, Second Time In 2022

For the second time this year, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has once again raised the benchmark interest rate to 14 per cent from 13 per cent to curtail the rising inflation.
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In June, Nigeria’s inflation rate reached a five-year high at 18.60 percent.

The monetary policy rate (MPR) is the baseline interest rate in an economy, every other interest rate used within an economy is built on it.

Addressing journalists on Tuesday after the committee’s meeting at the CBN headquarters in Abuja, Godwin Emefiele, Governor of Central Bank of Nigeria, said the hike in interest rate would help tame rising inflation.

The development is the second consecutive time the apex bank will be raising the benchmark rate this year

At its last meeting in May, the committee also raised MPR from 11.5 percent to 13 per cent over the surge in fuel and food costs.

Emefiele said the committee members voted to hike the rate by 100 basis points and retained the asymmetric corridor at +100 and -700 basis points around the MPR and liquidity ratio at 30 percent.