rate, known as the interest rate, by 400 basis points to 22.75 per cent from
18.5 per cent.
The CBN Governor, Olayemi Cardoso disclosed this at the
293rd Meeting of the Monetary Policy Committee press briefing in Abuja.
He said the move was to ensure that the country’s soaring
inflation rate, which stood at 29.90 per cent in January, was moderated.
The bank also raised the Cash Reserve Ratio to 45 per cent
from 32.5 per cent.
“We expect that this will moderate in the short to medium
term. We intend to work closely with other organs of government to take the
fiscal side of the inflation, especially regarding insecurity”, he said.
“As far as CBN is concerned, we are moving to a very
aggressive regulatory environment”, he added, speaking on the implementation of
its policy.
He said the bank will continue to make the market more
liquid, warning that operators who are not willing to abide by regulations will
face the consequences.
The last time the MPC raised interest rates was in July.
MPC held its first Meeting since its appointment in
September with a move to tighten monetary policy measures.
Recall that the Chief Executive Officer of the Financial
Derivatives Company, Bismarck Rewane, said the Central Bank Monetary Policy
Committee will have no option but to tighten interest rates amid soaring
inflation and economic hardship.
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