First Time In 3 Years, CBN Step Up Interest Rate To 13%

The Monetary Policy Committee of the Central Bank of Nigeria (CBN) on Tuesday, in a historic decision, raised the lending rate for the first time in about two and half years to 13 per cent.

The bank had held the official interest rate at 11.5 per cent to pursue a place of price stability that is conducive to growth. LEADERSHIP reports. Information Guide Nigeria

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This is as analysts said, it might not be as helpful as thought to be in curbing rising inflation and would do no good to the economy in terms of making lending affordable. jamb results

CBN governor, Mr Godwin Emefiele, said the aim is to tame inflation and maintain output growth. He said the CBN will leave the rate ta the new rate until it’s able to moderate inflation. Emefiele made the announcement yesterday at the end of a 2-day meeting of the MPC in Abuja.

“We have seen an aggressive growth in inflation figure between March and April 2022,” Emefiele said, adding: “We want to see to how we can tame inflation which is our core mandate and at the same time support growth in the other direction so that Nigerians can see prosperity effectively.” The decision of the apex bank to review the official interest rate upward had been projected by experts who point to rising global and domestic inflationary pressure.