The Central Bank of Nigeria (CBN) has increased the benchmark interest rate by 50 basis points to 18%.
The decision was made by the Monetary Policy Committee during their second meeting of the year, as disclosed by CBN Governor, Godwin Emefiele.
The asymmetric corridor around the MPR was maintained at +100 and -500 basis points.
Although analysts had predicted that the lending rates may not be raised, Emefiele stated that the increase was necessary to address inflation and other economic issues.
The MPR has been on the rise since April 2022 when it was 11.50%. This increase in the rate could lead to a corresponding rise in inflation rates and affect the prices of goods and services.