The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Tuesday increased the country’s Monetary Policy Rate (MPR) by 100 basis points to 16.5 percent from 15.5 percent.
Announcing the committee’s decision at the end of its two-day meeting on Tuesday, the CBN Governor, Godwin Emefiele, said the MPC also decided to hold all other parameters constant.
The Asymmetric Corridor of +100/-700 basis points around the MPR was, thus, retained, the Cash Reserve Ratio (CRR) was retained at 32.5 percent and the Liquidity Ratio of 30 percent was also retained.
According to Emefiele, 11 members of the MPC present at the meeting unanimously voted for rates increase.
“Nine members voted to raise the MPR by 100 basis points, while two members voted to raise rates by 50 basis points,” he said.
Emefiele said in reaching the decision on its policy stance, the MPC felt that all the causative factors in the economy, like the Russian-Ukraine war and supply chain disruption were still dominant.
“Loosening option was not desirable at this meeting. The committee also felt that, with the rising inflation, loosening the stance of policy will lead to a more aggressive rise in inflation.