The Monetary Policy Committee of the Central Bank of Nigeria, CBN, on Tuesday increased the benchmark interest rate by 100 basis points to 17.5 per cent to further tame rising inflation.
CBN Governor, Mr Godwin Emefiele, stated this on Tuesday while presenting the communiqué of the first MPC meeting of the year that began Monday.
Latest raise was the fifth time the apex bank would increase the interest rate amidst contrary advice from manufacturers and key stakeholders.
The CBN said previous increases were beginning to yield results with the slight drop in the inflation rate recorded in December 2022.
The apex bank however noted that the drop is not enough to celebrate, rather comes with the need to keep tightening the fiscal policy.
The CBN keeps the asymmetric corridor at +100/-700 basis points around the MPR and retained the Cash Reserve Ratio at 32.5 per cent and the liquidity ratio at 30 per cent.
Emefiele disclosed that the decision to raise the interest rate to fight inflation by members was unanimous.