The Monetary Policy Committee of the Central Bank of Nigeria – CBN has voted to increase the benchmark interest rate by 50 basis points to 18 percent.

The CBN Governor, Godwin Emefiele, disclosed this while reading the communiqué of the second MPC meeting of the year yesterday. Addressing journalists at the end of the two-day meeting in Abuja, Emefiele, said the committee voted to keep the asymmetric corridor at +100 and -500 basis points around the MPR.

Analysts in the country had predicted the Central Bank of Nigeria and the MPC may not raise the lending rates at the end of the Monetary Policy Committee. However, the governor stated that the slight increase is to mitigate the effect of inflation and other economic issues.

The MPR has been on the rise since April 2022, when it was 11.50 percent. The rate impacts lending and inflation rates, and, when jacked up, consequently affects the upward movement of prices of goods and services.