CEM REPORT | The Monetary Policy Committee of the Central Bank of Nigeria, upon unanimous agreement at the May session of the monthly meeting, has raised the monetary policy rate (MPR), which measures interest rate, to 13 per cent
Governor of the Central Bank of Nigeria, Godwin Emefiele, disclosed the increase after two years of expansionary monetary policy, while delivering the communique of the policy-setting committee meeting of the year, on Tuesday 24th May 2022.
The rate had been at 11.5% since September 2020, against which analyst had spoken following inflationary uptick to above 16%. Though it was necessary to hold rate to stimulate recovery from the covid-19 induced recession, curbing rising inflation has become paramount.
Highlights of the Committee’s decision are
- MPR raised to 13%
- The asymmetric corridor of +100/-700 basis points around the MPR was retained
- CRR was retained at 27.5%
- While Liquidity Ratio was also kept at 30%