The Monetary Policy Committee (MPC) reports that the Central Bank of Nigeria (CBN) increased its benchmark interest rate by 400 points to a record 22.75%.
The Committee also increased the cash reserve ratio from 32.5% to 45.5% and modified the assymetric corridor surrounding the MPR from+100 to -700.
From 13% in May 2022 to 18.75% in July 2023, the MPR has increased.
The new rate exceeded the predictions of every financial expert.
In less than two months, Central Bank of Nigeria is expected to raise interest rates twice sharply in an effort to rein in inflation and bolster the value of the naira.
Interest rate reductions have been advocated by Nigeria’s President Bola Tinubu in an effort to boost consumer spending and investment.
