CBN Raises Interest Rate to 14%, the Highest Level Since 2019 As Inflation Bites Nigerians

CBN Raises Interest Rate to 14%, the Highest Level Since 2019 As Inflation Bites Nigerians

  • The Central Bank of Nigeria has raised the monetary policy rate, also known as the interest rate to 14%
  • This is coming amid rising inflation, the low purchasing power of Nigerians and the Naira depreciation
  • CBN will be hoping that the interest rate will help reduce inflation which seriously affects Nigerians

The policy-setting committee of the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), which measures interest rate, from 13 per cent to 14 per cent.

The new interest rate is at the highest level the committee has decided on since January 2019.

Addressing journalists on Tuesday, July 19, after the committee’s meeting at the CBN headquarters in Abuja, Godwin Emefiele, governor of the apex bank, said the hike in interest rate would help tame rising inflation.

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CBN increases interest rate
CBN Governor, Godwin Emefiele Credit: tomskae
Source: Getty Images

CBN explains

Emefiele, in his address to journalists said that the committee decided to raise interest following rising in inflation figures despite the low purchasing power of Nigerians.

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Nigeria's inflation rate in the month of June 2022 increased to 18.60 per cent on a year-on-year basis.

June inflation rate is the highest level in 65 months (over 5 years), and the fifth consecutive monthly rise.

The last time the inflation rate in Nigeria touched the 18.6% ceiling was January 2017, when it stood at 18.72%.

We are doing everything possible to crash food prices, Buhari tells Nigerians

Earlier, Legit.ng reports that President Muhammadu Buhari promised to crash food prices.

The president, through the minister of agriculture and rural development, Mohammed Abubakar, announced that all hands are on deck to ensure everything is set in bringing up a stimulus package that will crash food prices.

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The Minister made this disclosure in Abuja on Monday, November 15, during a familiarization tour of the Agricultural Research Council of Nigeria.

He said President Buhari was concerned about agriculture and was committed to seeing that people had “food to eat every single day to eat without struggles on their tables.”

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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