The Central Bank of Nigeria (CBN), has raised interest rates to 18 per cent, up by 50 basis points, Godwin Emefiele, its Governor, announced on Tuesday, saying the decision came from the Monetary Policy Committee (MPC) of the apex bank.
Unveiling the communiqué of the second MPC meeting, he said the committee also pegged the liquidity ratio at 30 per cent, adding that the tightening of the rate was expected to curtail inflation currently put at 21 per cent.
Emefiele, who informed that the currency in circulation amounted to N1trillion redesigned notes, stated that the apex bank aligned itself with the Supreme Court’s judgement adding that the bank would continue to pump more currency into the system but with caution.
The central bank boss expressed confidence in the nations commercial banks stating that they have remained resilient with capital requirement at 13 per cent, non performing loans at 4.2 per cent and cash reserve of the banks raising to N14trillion.
