• Tue. Apr 23rd, 2024

Central Bank of Nigeria has raises the monetary policy rate from 18.5 to 18.75 percent.

The hike in rate was announced by the Bank’s Acting Governor, Mr. Folashodun Shonubi, at a news conference following the conclusion of the Monetary Policy Committee (MPC) meeting in Abuja.

This is the ninth consecutive rate increase by the committee, which has now become a consistent move.

According to the Acting Governor, who presided over the first MPC meeting since his appointment, the decision to raise the rates was supported by six out of the eleven members of the monetary policy committee in attendance.

The five other members voted to hold the rates constant.

Mr. Folashodun said the decision to raise the rates was in furtherance of its efforts to rein in inflation which currently stands at 22.79 percent.

On the foreign exchange situation, Mr. Folasodun said what the bank sought to achieve was not a unification of rates but to ensure efficiency in the market.

He said what was being experienced in the forex market was a result of pent up demand and expressed optimism that the demand would soon cool off with a positive appreciation of the naira.

Meanwhile, Mr. Folasodun said the bank was keenly observing the situation and would intervene where necessary.