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

The interest rate, also referred to as the monetary policy rate, was increased by 400 basis points by the Central Bank of Nigeria, from 18.5 percent to 22.75 percent. At the 293rd Meeting of the Monetary Policy Committee press briefing in Abuja, CBN Governor Olayemi Cardoso revealed this.

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According to him, the action was taken to make sure that the nation’s skyrocketing inflation rate—which was 29.90% in January—was restrained.

Additionally, the bank increased the Cash Reserve Ratio from 32.5% to 45%. “In the near to medium term, we anticipate that this will moderate.

In order to address the fiscal aspect of inflation, particularly with regard to insecurity, we plan to collaborate closely with other government agencies,” he declared.