The Central Bank of Nigeria (CBN), on Tuesday, July 25, 2023, raised the Monetary Policy Rate (MPR), which measures interest rate, from 18.5 percent to 18.75%.
Acting CBN Governor, Folashodun Shonubi disclosed this development after the bank’s Monetary Policy Committee (MPC) meeting in Abuja.
This is the first decision of the monetary committee since President Bola Tinubu’s assumption of office on May 29, 2023.
It is also the first decision of the committee in about a decade without Godwin Emefiele who was suspended as the governor of the apex bank on June 9, 2023.
Last week, Nigeria’s headline inflation rose to 22.79% in June from the 22.41% recoded in May 2023 amid soaring food prices and rising cost of transportation occasioned by the removal of subsidy on Premium Motor Spirit known as petrol.
This was according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistic (NBS). The CPI measures the rate of change in prices of goods and services.
Speaking at the CBN headquarters in Abuja on Tuesday, Shonubi said “hiking the interest rate has made a lot of difference in moderating the rate of inflation”.
More to follow…
