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The Central Bank of Nigeria has raised interest rate to 15.5 percent from 14 percent

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The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate, which measures interest rate, to 15.5 percent from 14 percent.

The CBN Governor, Godwin Emefiele, made this known after an MPC meeting in Abuja yesterday.

Emefiele said this is meant to tame rising inflation.

The CBN chief explained that members deliberated the impact of the widening margin between the current policy rate of 14 percent and the inflation rate of 20.52 percent.

According to him, the option of reducing the policy rate was not considered as this would be gravely detrimental to reigning in inflation.

He added that 10 members voted to raise the Monetary Policy Rate by 150 basis points, while, one voted to raise it by 100 basis points, and one by 50 basis points.

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