The Monetary Policy Committee (MPC) of the Central Bank of Nigeria has voted to increase the benchmark interest rate (MPR) by 100 basis points to 16.5%, the highest level since 2001.
This was disclosed by the Governor of CBN, Godwin Emefiele, while reading the communique of the last MPC meeting of the year on Tuesday.
During the meeting, the MPC noted that the tightening will help restore investors’ confidence whilst curbing higher rate of inflation.
The apex bank had increased the MPR from 11.5% earlier this year to 15.5% across three consecutive rate hikes.
Nigeria’s money supply rose to its highest level at N50.5 trillion at the end of October 2022, an increase of N1.26 trillion from the previous month.
Nigeria’s inflation rate rose to 21.09% in October 2022 from 20.77% recorded in the previous month, an indication of a further rise in the cost of goods and services, despite the hawkish move by the CBN in the past six months.