CBN raises interest rate to 18%

Tue, Mar 21, 2023
By editor


THE Central Bank of Nigeria, on Tuesday raised the benchmark interest rate to 18 percent.

The CBN during the Monetary Policy Committee, MPC, meeting decided in favour of the decision to increase the benchmark interest rate by 50 basis points.

Godwin Emefiele, CBN Governor, while reading the communiqué of the meeting noted that the committee pegged the liquidity ratio at 30 percent.

Emefiele noted that the tightening of the rate is expected to curtail inflation currently put at 21 percent.

On naira redesign, Emefiele explained that the bank aligns itself with the Supreme Court’s judgement as currency in circulation (redesigned naira) is about one trillion naira.

He said that the bank will continue to pump more currency into the system but with caution.

While speaking on performance of the banking system, the central bank governor expressed confidence in the nations commercial banks stating that they have remained resilient with capital requirement at thirteen percent, non performing loans at four point two percent and cash reserve of the banks raising to fourteen trillion naira.

-(With report from Channels)