• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

CBN raises interest rate for fourth straight time to 16.5%

3 years ago
in Business, Economy, Features, highlights, Home, home-news, latest News, Markets
1 min read
0 0
0
38
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

CBN raises interest rate for fourth straight time to 16.5%

The Central Bank of Nigeria (CBN) on Tuesday after the two day Monetary Policy Committee meeting in Abuja, raised its benchmark interest rate, known as Monetary Policy Rate (MPR) by 100 basis points to 16.5 percent, the fourth straight hike this year.

This was in consideration of the persistent rise in inflation rate and fragile growth. Nigeria’s headline inflation accelerated to the highest level in 17 years to 21.09 percent in October 2022, from 20.77 percent in the previous month.

The CBN had in the last few months increased its monetary policy stance by a combined 400 basis points to rein in inflation. In its meeting in May 2022, the CBN raised its benchmark interest rate by 150 basis points to 13 percent, the first time in six years.

In July 2022, Africa’s most populous country’s big bank also increased its interest rate by 100 basis points to 14 percent and in September to 15.5 percent by 50 basis points.

After the meeting, MPC members unanimously voted to retain other parameters. Consequently the CBN retained the Asymmetric Corridor of +100/-700 basis points around the MPR; retained the CRR at 32.5 per cent; and the Liquidity Ratio at 30 per cent.

Godwin Emefiele, governor of the CBN, who announced the decision after the meeting said, “the MPC noted with concern the continued aggressive movement in inflation, even after the three consecutive rate hike at its previous meetings. He expressed its unrelenting resolve to restore price stability while providing the necessary support to strengthen the fragile recovery.”

RelatedPosts

The Global Push for a Just Transition in Energy Jobs

Why the IEA Reinstated Its “Business as Usual” Scenario

GRA Targets Offshore Income in Expanded Tax Compliance Drive

However, the new rate hike is not surprising to some analysts as they expected further hike. Some analysts described the hike in interest rate for three consecutive times as a way to lure foreign inflows into the country and ease the pressure on the naira.

In meetings with investors, including at the IMF Annual Meetings, Emefiele has pledged to raise the policy rate for as long as inflation is still accelerating, stating that Nigeria has decisively moved away from the accommodative monetary policy in place since the economic shocks of 2016.

Alongside a willingness to adjust the naira/dollar rate in line with the Real Effective Exchange Rate (REER), said Standard Chartered Bank in a report.

“We think this implies an eventual NAFEX rate of about 500 – we believe that the CBN may be preparing the ground for FX reforms and is willing to accommodate higher market interest rates in order to attract foreign portfolio investors. We now expect a 150bps hike in the monetary policy rate to 17.0 percent in November (consensus: 16.0%, prior 14.0%),” said Razia Khan, managing director, Chief Economist, Africa and Middle East Global Research, Standard Chartered Bank.

Source: businessdayng
Via: norvanreports
Tags: CBN raises interest rate for fourth straight time to 16.5%Central Bank of Nigeria (CBN)IMFMonetary Policy Rate (MPR)
No Result
View All Result

Highlights

Gold Boom Drives Rising Costs for Australian Producers

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

Premier League: Spurs Stun Man City at Etihad; Arsenal Dominates Leeds to go Top

CHAN 2024: Senegal, Sudan Complete Semifinal Lineup

From Promise to Peril: How Exam Fraud is Eroding Ghana’s Educational Soul

The 10 Fastest-Growing Trading Nations in Africa

Trending

Features

The Global Push for a Just Transition in Energy Jobs

August 24, 2025

The Global Push for a Just Transition in Energy Jobs For years, energy workers from the fossil...

Why the IEA Reinstated Its “Business as Usual” Scenario

August 24, 2025

GRA Targets Offshore Income in Expanded Tax Compliance Drive

August 24, 2025

Gold Boom Drives Rising Costs for Australian Producers

August 24, 2025

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

August 24, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.