CBN hikes interest rate, insists on January deadline for old Naira notes

The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR), which measures interest rate from 16.5% to 17.5 percent to curtail inflation.

The CBN Governor, Godwin Emefiele announced this after the apex bank’s Monetary Policy Committee (MPC) meeting in Abuja on Tuesday.

The MPC raised the monetary policy rate by 100 basis point to 17.5% and kept the asymmetric corridor at +100/-700 basis points around the MPR.

The MPC retained Cash Reserve Ratio (CRR) by 32.5% while liquidity ratio is kept at 30%.

Emefiele said MPC “members welcome the recent deceleration of the year-on-year headline inflation, noting that the persistence in policy rate hike over the last few meetings of the committee have started to yield the expected decline in inflation.”

The CBN governor said the committee considered perennial scarcity of Premium Motor Spirit known as petrol, the 2023 general elections, continuous rise in energy prices, exchange rate pressure as well as continuous rise in insecurity.

He said committee members noted that the naira redesign has huge moderating factors to price development on cash.

Announcing the committee’s decision, Emefiele said, “MPC was of the view that although inflation rate moderated marginally in December, the economy remained confronted with the risk of high inflation with adverse consequences on the general standards of living.

“Committee, therefore, decided to sustain the current stance of policy at this point in time to further rein in inflation aggressively.

“MPC voted to raise the MPR to 17.5%, retain the asymmetric at +100/-700 basis points around the corridor.”

The CBN also said its January 31, 2023 deadline for the validity of the old N200, N500 and N1,000 notes remains.

“I must say here that unfortunately, I don’t have good news for those who feel that we should shift the deadline. My apologies.

 

Latest

Premier League: United beat Palace, Wolves maul Liverpool

Marcus Rashford continued his red-hot scoring streak as a...

Everton stun Arsenal in Dyche’s first game

New Everton manager Sean Dyche enjoyed a dream start...

NBA outraged over killing of judicial officer in Imo Court

The Nigerian Bar Association (NBA) on Saturday condemned the...

INEC conducts mock accreditation ahead of elections

The Independent National Electoral Commission (INEC) has begun a...

Newsletter

Don't miss

Premier League: United beat Palace, Wolves maul Liverpool

Marcus Rashford continued his red-hot scoring streak as a...

Everton stun Arsenal in Dyche’s first game

New Everton manager Sean Dyche enjoyed a dream start...

NBA outraged over killing of judicial officer in Imo Court

The Nigerian Bar Association (NBA) on Saturday condemned the...

INEC conducts mock accreditation ahead of elections

The Independent National Electoral Commission (INEC) has begun a...

2023: Presidency backing Atiku – Wike

Governor Nyesom Wike on Friday maintained his claim that...

Premier League: United beat Palace, Wolves maul Liverpool

Marcus Rashford continued his red-hot scoring streak as a Manchester United side reduced to 10 men survived late Crystal Palace pressure to secure a...

Everton stun Arsenal in Dyche’s first game

New Everton manager Sean Dyche enjoyed a dream start as a much-improved side deservedly edged out Premier League leaders Arsenal at a raucous Goodison...

NBA outraged over killing of judicial officer in Imo Court

The Nigerian Bar Association (NBA) on Saturday condemned the killing of the Chairman of Ejemekwuru Customary Court in the Oguta Local Government Area (LGA)...
%d bloggers like this: