Last Tuesday, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) raised the bank's interest rate by 14%.

In three months the increase went to 250 basis points. At the end of its July meeting, the MPC again announced a further tightening of rates by 100 basis points. The bank had maintained the official interest rate at 11.5% to seek growth-friendly price stability. However, the MPC has left other monetary parameters constant around the MPR. This implies that the umbrella bank held the asymmetric corridor of +100/-700 basis points was also retained, as was the cash reserve ratio of 27.5%, while the liquidity ratio was also maintained at 30%. Already in May, the committee raised the monetary interest rate from 11.5% to 13%.