In an effort to tame the rising inflation rate in the country, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) to 13 percent. The MPR is the baseline interest rate of a nation’s economy and every other interest rate used within the economy is built on it.
The decision of the MPC was announced on Tuesday by the CBN Governor, Godwin Emefiele at the end of the Committee’s meeting at CBN Headquarters, Abuja.
He said, “The sharp rise in inflation across both the advanced and emerging market economies has generated growing concerns among central banks as the progressive rise in inflation driven by rising aggregate demands and wage growth has put sustainable pressure on price levels.
“Consequently, the major central banks such as the US Fed, the Bank of England, European Central Bank, and Bank of Canada have provided strong guidance of a progressive shift away from monetary policy accommodation to drive market interest rate which may ultimately impact capital flows away from emerging market economies”.
Emefiele also urged banks and the Federal Government to intensify efforts in supporting monetary authority.
