The Monetary Policy Committee (MPC) of the Central Bank of Nigeria has increased the Monetary Policy rate to 13% after over two years of expansionary monetary policy.
This was disclosed by the Governor of the CBN, Godwin Emefiele, while reading the communique of the third MPC meeting of the year, on Tuesday 24th May 2022.
The rate which had been at 11.5% since September 2020, has now been raised by the apex bank to 13%.
The asymmetric corridor of +100/-700 basis points around the MPR was retained.
Cash Reserve Ratio and Liquidity ratio were also retained at 27.5% and 30% respectively
Experts have opined that the rate increase was done to curb inflation induced by the liquidity that would attend the coming elections.