THE Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) to 13.5 per cent, in a bid to mop up excess liquidity ahead of the 2023 general elections. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria on Tuesday, May 24, 2022, concluded its two-day meeting which was the third in the year. The Committee at the end of the meeting elected to hike the Monetary Policy Rate (MPR) and retain other policy parameters the benchmark interest rate (MPR) which is the benchmark interest rate was raised by 150 basis points (bps) to 13.00 per cent from 11.50 per cent. It should be noted that this was the first time in two and a half years that the policy-setting committee of the nation’s financial regulator would increase the MPR, which measures the interest rate. The MPR is the baseline interest rate in an economy while every other interest rate used within such an economy is built on it.

Source: Nigerian Tribune May 25, 2022 15:25 UTC