The Monetary Policy Committee (MPC) on Tuesday voted to raise the Monetary Policy Rate (MPR) by 1.5 percent to 13 percent.
This is according to a Communique issued at the end of the MPC meeting held on Monday May 23 and Tuesday May 24, 2022m which was signed by Godwin Emefiele, Governor, Central Bank of Nigeria.
The committee decided to raise the rates “to rein in the current rise in inflation as Members were of the view that the continued uptrend would adversely affect growth.”
“While it may seem contradictory to raise rates in the face of fragile growth, this is the dilemma that most Central banks around the world are grappling with at the moment. Yet, on balance, it is quite clear and compelling that tackling inflation is more urgent in the sequence of policy objectives,” the communique read in part.
The committee also voted to:
- Retain the asymmetric corridor of +100/-700 basis points around the MPR;
- Retain the CRR at 27.5 per cent; and
- Retain the Liquidity Ratio at 30 per cent.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
