The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has raised Monetary Policy Rate to 13 per cent, first time in two and half years.
The apex bank had held the official interest rate at 11.5 per cent.
CBN Governor, Godwin Emefiele, made the announcement on Tuesday at the end of a two-day meeting of the MPC.
He said the aim was to tame inflation and maintain output growth. He said the CBN will keep the new rate until it's able to moderate inflation.
"We have seen an aggressive growth in inflation figure between March and April 2022," Emefiele said.
He said the bank will use it's development finance approach through its intervention programmes to improve output growth.
Nigeria recorded a 90 basis points growth in inflation within the last two months.
Meanwhile, the committee held other policy parameters constant around the MPR. It means that the apex bank held the asymmetric corridor of +100/-700 basis points was also retained, same for the Cash Reserve Ratio at 27.5 per cent, while Liquidity Ratio was also kept at 30 per cent.
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