The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has again increased the monetary interest rate (official interest rate) by 150 basis point at the September edition of its bi-monthly meeting.
By that, the apex bank increased the interest rate from 14 per cent to 15.5 per cent.
The bank also increased its Cash Reserve Ratio (CRR) by five per cent by a minimum by 32.5 per cent.
At its meeting in July when the MPC increased MPR to 14 per cent, CBN Governor, Godwin Emefiele, said the the bank would continue to raise rates in line with the rising inflationary figure. Nigeria’s inflation currently stands at 20.52 per cent.
By increasing the CRR, Emefiele said all the banks in Nigeria must fund their accounts latest by Thursday “because we will debit their account by Thursday.”
He said any bank that fails to fund its account will face sanctions, including denial of access to Forex.