By: Babagana Bukar Wakil, Maiduguri
The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate MPR from 13 percent to 14 Percent.
CBN Governor Godwin Emefiele announced this during the 286th meeting of the Monetary Policy Committee held in Lagos.
According to him, it was the right option considering economic realities.
The monetary policy rate (MPR) is the main interest rate in a country or economy on which all other interest rates in that economy are based.
While the apex bank increased the MPR rate, it, however, retained other parameters.
HE stated Committee thus vote unanimously to raise the Monetary Policy Rate (MPR). One member voted to increase the MPR by 150 basis points, six members by 100 basis points, one member by 75 basis points and three members by 50 basis points.
Tuesday’s rate hike marks the second time, the MPC will raise the interest rate in two months.
The MPC increased the rate from 11.5 percent to 13 percent on May 24.
Reacting on the development the Vice president of Manufactures Association of Nigeria Alh. Safiyanu Madugu said that increment has deeply affected their business and it could led to the collapse of many manufacturers in the country.