By Tony Obiechina, Abuja
Amidst rising inflation, the Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) by 100 basis points to 14 per cent.
The apex bank’s Monetary Policy Committee (MPC), took the decision on Tuesday at the 286th meeting held in Abuja, a move it believes would promote stability against rising inflation.
The CBN Governor, Godwin Emefiele, announced this on Tuesday while addressing journalists after the MPC meeting.
Inflation had defied the bank’s monetary tightening objectives as it rose to 18.6 per cent in June, 2022.
He said the broad outlook for both the local and domestic economy remains cloudy considering the economic headwinds.
The apex bank boss said available data showed that there is likelihood for a growth decline due to supply blockages on account of the Russia-Ukraine war and high energy prices.
The governor said members are cautious of broad money supply due to election spending in the country, insecurity and upsurge in price of energy.
Emefiele said there was a need for a balance in the pricing of petroleum products and curbing insecurity.
The MPC expressed concern on Nigeria’s debt sustainability as borrowing is on the increase.
He told journalists that members of the committee were unanimous in their decision not to tighten or loosen the rates.
The committee said the 13 per cent rate did not curb the rising inflation as not containing inflation would threaten growth and the purchasing power of the poor.
MPC also retained the Asymmetric Corridor of +100/-700 basis points around the MPR, the CRR at 27.5 per cent and the Liquidity Ratio at 30 per cent
