CBN sets interest rate at 16.5%

Promise Odejide

Central Bank of Nigeria on Tuesday, November 22 has increased its interest rate to 16.5 per cent in a move to control inflation and ease accelerating pressure on the naira.

Godwin Emefiele, governor of the Nigeria’s apex bank, made this announcement at the end of the bi-monthly meeting of the Monetary Policy Committee in Abuja.

The MPC said the main reason is to curb a higher rate of inflation and restore investors’ confidence.

According to a report by Nairametrics, the highlights of the MPC meeting included: increase MPR by 100 basis points to 16.5 per cent; the asymmetric corridor of +100/-700 basis points around the MPR was retained; the CRR was retained at 32.5 per cent; while the Liquidity Ratio was also kept at 30 per cent.

The central bank had raised the MPR from 11.5 per cent earlier this year to 15.5 per cent across three consecutive rate hikes.

Inflation rate has previously risen to 21.09 per cent in October 2022 from 20.77 per cent in the previous month.