The Central Bank of Nigeria (CBN) has announced the increase of the interest rate to 13.5% for the first time in many years.
The new rate was announced by the CBN Governor, Godwin Emefiele, on Tuesday
He disclosed the increase while addressing newsmen after the Monetary Policy Committee (MPC) meeting in Abuja.
The interest rate was increased from 11.5% to 13.5%.
Emefiele noted however, that the MPC is suspicious there might be an aggressive accretion of inflation.
He said to prevent the looming inflation the MPC had to increase the monetary policy rate by 150 basis points.
Nonetheless, CBN retained the asymmetric corridor around the MPR at +100 /-700 basis points, Cash Reserve Ratio (CRR) at 27.4 %, and Liquidity Ratio (LR) at 30%.