The Central Bank of Nigeria (CBN) on Tuesday announced a further hike in the monetary policy rate (MPR) by 100 basis points to 16.5 per cent from 15.5 per cent.
This increment in the main interest rate was announced by the Governor of the CBN, Mr Godwin Emefiele, while briefing newsmen in Abuja after the Monetary Policy Committee (MPC) meeting.
The CBN hopes that raising rates will reduce the money supply in the economy and rein in inflation, but some analysts are of the view that the move also faces the risk of slowing economic growth.
UPDATE: CBN raises benchmark interest rate to 16.5% to tame inflation
