CBN RAISES INTEREST RATES TO 15.5% TO TAME RISING INFLATION

The Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), which measures interest rate, from 14 per cent to 15.5 per cent, the third consecutive increase in 2022. The CBN governor Godwin Emefiele, governor of the apex bank, said ten members of the policy-setting committee voted for the rate hike. He said the rate hike would shape the country’s economic growth. The committee also raised the cash reserve ratio (CRR) to 32.5 per cent from 27.5 per cent. CRR is the share of a bank’s total customer deposit that must be kept with the central bank in liquid cash.