CBN raises interest rate to 14 per cent

The Central Bank of Nigeria (CBN) has raised monetary policy rate (MPR) from 12 per cent to 14 per cent as part of measures to curtail inflation.
 CBN Governor, Godwin Emefiele explained at the end of the Monetary Policy Committee (MPC) meeting on Tuesday in Abuja that the committee also decided to retain the cash reserve ratio (CRR) at 22.5 per cent; liquidity ratio at 30 per cent; and the asymmetric window at +200 and -500 basis points around the MPR.
He explained that the committee was concerned about the rising inflation which is approaching twice the size of the upper limit of the policy reference band.
Emefiele said: “Inflation has risen significantly, eroding real purchasing power of fixed income earners and dragging growth.”