For the first time in two years, the Central Bank of Nigeria raised the interest rate to 13% on Tuesday.
The interest rate has been increased from 11.5 to 13.5 percent.
Godwin Emefiele, the Governor of the Central Bank of Nigeria, disclosed this to reporters after the Monetary Policy Committee meeting in Abuja on Tuesday.
Emefiele justified the increase by stating that the MPC is concerned about aggressive inflation.
He claimed that the MPC needed to raise the monetary policy rate by 150 basis points to avoid imminent inflation.
Meanwhile, the central bank of the country kept the asymmetric corridor around the MPR at +100/-700 basis points, the Cash Reserve Ratio at 27.4%, and the Liquidity Ratio at 30%.