JUST-IN: MPC Raises Interest Rate To 18.75%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has, again, increased the official interest rate by 25 basis points as predicted by this newspaper.

The MPC at the end of its meeting on Tuesday announced the increase of Monetary Policy Rate (MPR) from 18.5 per cent to 18.75 per cent as a response to Nigeria’s rising headline inflation.

The MPC voted to adjust the asymmetric corridor to +100 to -300 basis points.

All members voted to narrow the asymmetric corridor from +100 -700 basis points to +100 -300 basis points around the MPR.

The apex bank also retained the CRR at 22.5 per cent; and retained the liquidity ratio at 30 per cent.

Addressing journalists at the end of the MPC meeting in Abuja Tuesday evening, the acting CBN governor, Folashodun Shonubi, said the apex bank has also commenced intervention in the Forex market to make up for shock.

He also promised that “we will continue to intervene in the market.”

Details Later…