The Central Bank of Nigeria (CBN) has decided to increase the Monetary Policy Rate (MPR) from 18.5 percent to 18.75%. The decision was announced by Acting CBN Governor, Folashodun Shonubi, following the conclusion of the bank's Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, July 25, 2023.
This marks the first decision made by the monetary committee since President Bola Tinubu took office on May 29, 2023. The adjustment to the MPR comes in response to the prevailing economic challenges faced by the nation and signals the new administration's proactive approach to monetary policies.
The MPR, which measures the benchmark interest rate, plays a critical role in influencing lending rates, investment decisions, and overall economic growth. By raising the rate, the CBN aims to curb inflationary pressures and encourage saving, which could result in a more stable economic environment.
Furthermore, this decision stands as a historic moment for the MPC, as it marks the first time in almost a decade without the presence of Godwin Emefiele, who was suspended as the Governor of the Apex bank.
Emefiele, who assumed the role of CBN governor from June 4, 2014, was suspended by President Tinubu on June 9, 2023.