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In Order To Combat Rising Inflation, CBN Hikes Interest Rates To 22.75%

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Theinterestrate,alsoreferredtoasthemonetarypolicyrate,wasincreasedby400basispointsbytheCentralBankofNigeria,from18.5percentto22.75percent. Atthe293rdMeetingoftheMonetaryPolicyCommitteepressbriefinginAbuja,CBNGovernorOlayemiCardosorevealedthis.

Recommended: https://whitebeetles.net/nigeria-considers-raising-interest-rates/

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Accordingtohim,theactionwastakentomakesurethatthenation’sskyrocketinginflationrate—whichwas29.90%inJanuary—wasrestrained.

Additionally,thebankincreasedtheCashReserveRatiofrom32.5%to45%. “Intheneartomediumterm,weanticipatethatthiswillmoderate.

Inordertoaddressthefiscalaspectofinflation,particularlywithregardtoinsecurity,weplantocollaboratecloselywithothergovernmentagencies,”hedeclared.

 

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