CBN raises interest rate to 18.5%, highest in 22 years

The Central Bank of Nigeria at its just concluded Monetary Policy Committee (MPC) meeting raised its benchmark interest rate (MPR) by 50 basis points to 18.5 percent, the country’s highest in 22 years.

This was announced by the CBN governor, Godwin Emefiele, on Wednesday during the post-MPC press conference.

The headline inflation rate reached its highest level since September 2005 in April 2023, rising to 22.22 percent from 22.04 percent the previous month.

This will be the third interest rate increase in 2023 for the Mr. Emefiele-led Apex Bank.

Both a high rate of inflation and a decreasing exchange rate on both the official and unofficial markets have been problems for Nigeria.

The population’s purchasing power was diminished in April 2022 as headline inflation spiked to its greatest level in more than 17 years.

To counteract the ongoing rise in inflation, the apex bank has increased the interest rate further.