Just two months after it was increased to 13% by the body, the Monetary Policy Committee of the Central Bank increased the monetary policy rate (MPR) to 14 percent on Tuesday.
The news was made by CBN Governor Godwin Emefiele following the MPC’s 286th meeting. According to him, the change was required to offset the consequences of growing inflation.
The Nigerian Bureau of Statistics reported that in May, Nigeria’s inflation spiked to an 11-month high, coming in at 17.71%.
The MPR serves as the economy’s starting point from which all other interest rates are derived.
Prior to the increase on May 24, the banking authority had held the MPR steady at 11.5 percent for two and a half years.