BREAKING: CBN Increases Interest Rate for the Third Time in 2023, Highest in 22 Years

CBN has elevated its Interest Rate for the third time (*22*) 2023, the highest (*22*) 22 years.

Newsone reviews that the Financial Coverage Committee (MPC) of the Central Financial institution of Nigeria (CBN), on Wednesday, Could 24, 2023, unanimously voted to extend its financial coverage rates of interest to 18.5 %.

This on-line information platform understands that the CBN MPC had (*22*) March this yr, voted to extend the benchmark rate of interest by 50 foundation factors to 18 %, the CBN Governor, Godwin Emefiele, disclosed this whereas studying the communiqué of the third MPC assembly of the yr on Wednesday.

Addressing journalists at the finish of the two-day assembly (*22*) Abuja, Nigeria’s capital, CBN Governor Emefiele, mentioned the committee voted to maintain the uneven hall at +100 and -700 foundation factors round the MPR.

Justifying the rising inflation fee, the Financial Coverage Committee of the CBN blamed the excessive power price and challenges round the provide chain, amongst others, that are past the attain of the CBN.

He added, “The present pattern (*22*) worth growth would proceed to be monitored by the financial institution with larger collaboration with fiscal authority to deal with the drivers of inflation.”

In the meantime, Newsone Nigeria reviews that analysts (*22*) the nation had predicted the CBN and the MPC may increase the lending charges at the finish of the Financial Coverage Committee. The apex financial institution had elevated the MPR from 11.5 % earlier final yr to 18 % (*22*) March this yr throughout six consecutive fee hikes.

The choice of the CBN is made on the again of the rising inflation fee (*22*) the Nigerian economic system. Headline inflation rose to 22.22% (*22*) April 2023 from 22.04% recorded (*22*) the earlier month, representing its highest degree since September 2005. CBN’s rate of interest at 18.5% represents its highest degree (*22*) 22 years.

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