By Akinwande Soji-Ojo
The Central Bank of Nigeria (CBN) has raised the interest rate to 13.5 per cent.
CBN Governor, Godwin Emefiele, disclosed this on Tuesday while briefing newsmen after the Monetary Policy Committee meeting in Abuja.
Emefiele said six out of eleven committee members voted to raise the interest rate to tame the rising inflation in the country.
He said the committee also voted to retain the asymmetric corridor at +100 and -700 basis points around the interest rate and liquidity ratio at 30 per cent.
“Six members voted to raise the MPR by 150 basis points, four members’ by 100 basis points and one member, by 50 basis points.
“Members expressed deep concern about the continued uptrend of inflationary pressure in spite the gradual improvement in output growth.
“Committee notes that the current rise in inflation is inimical to growth and the full recovery of the Nigerian economy,’’ Emefiele said.
“After carefully reviewing developments in the two months, and outlook of growth in the domestic and global economy as well as downsides of each policy.
“It is clear and compelling that tackling inflation is more urgent in sequence of policy objectives. MPC urged the CBN to double its effort at supporting the priority growth-enhancing sectors of the economy.
“It urged the Federal Government to do more to provide a safe and secure environment for economic activities to stimulate growth,” Emefiele said.