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MPC Hikes Monetary Policy Rate to 16.5%

Emefiele

Godwin Emefiele

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has hiked its Monetary Policy Rate (MPR) by 100 basis points to 16.5 percent.

The previous hike decisions are beginning to yield results, as seen by the deceleration of inflation on a month to month basis,” according to the CBN Governor Godwin Emefiele.

“A loosening option was not desirable, as well as a hold stance in December and ahead of elections.”

Tightening would sustain gains of previous 3 rate hikes, Emefiele said.

The CRR was maintained at 32.5%, liquidity ratio remains 30%, and asymmetric corridor at +100/-700 basis points around MPR.

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