CBN increases MPR again to fight soaring inflation

The Central Bank’s Monetary Policy Committee on Tuesday hiked the monetary policy rate (MPR)  to 14 per cent, barely two months after it was raised to 13 per cent by the body.

Godwin Emefiele, the CBN governor made the announcement after the 286th meeting of the MPC. He said the adjustment was needed to defray the effects of rising inflation.

Nigeria’s inflation surged to an 11-month high in May, standing at 17.71 per cent, according to the report from the Nigerian Bureau of Statistics.

MPR is the baseline interest rate in an economy from where every other interest rate used within the economy derives.

The financial regulator had frozen the MPR at 11.5 per cent for two and a half years before the May 24 increment.

More details later..