konga Ad Campaign konga Ad Campaign konga Ad Campaign
ADVERTISEMENT
  • The Membership Club
  • #EndSARS Dashboard
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Tuesday, July 5, 2022
Premium Times Nigeria
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Special Reports and Investigations
      • Health Specials
    • Features and Interviews
    • Multimedia
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • #PandoraPapers
  • AUN-PT Data Hub
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Special Reports and Investigations
      • Health Specials
    • Features and Interviews
    • Multimedia
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • #PandoraPapers
  • AUN-PT Data Hub
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
The Central Bank of Nigeria, CBN. [PHOTO CREDIT: Ehud Kaduna]

The Central Bank of Nigeria, CBN. [PHOTO CREDIT: Ehud Kaduna]

Nigeria’s central bank raises interest rate from 11.5% to 13%

The 150 basis point hike is significant as Nigeria battles rising inflation.

byOladeinde Olawoyin
May 24, 2022
2 min read

The Central Bank of Nigeria’s Monetary Policy Committee has jacked up benchmark interest to 13 per cent, 150 basis points above the previous rate.

It is the first change since September 2020 and the fist hike in six years.

The Governor of the Central Bank, Godwin Emefiele, made this known while reading the communique of the MPC’s 142nd meeting.

Mr Emefiele said the action was to tame the rising inflation rate in the country.

The CBN governor, however, said the rate on development finance loans will remain at 5 percent till 2023.

A 0.5 percentage points interest rate hike announced by the United States’ Federal Reserve earlier in the month reverberated around the globe, spurring other economies to hike rates.

The U.S. Fed raised its benchmark interest rate to a target rate range of between 0.75% and 1%, the largest hike in 22 years. The decision followed a 0.25 percentage point increase in March, the first increase since December 2018.

Global Effect

Subsequently, in the wake of the U.S’ decision, the Bank of England increased interest rates from 0.75% to 1% in order to tackle soaring inflation that is expected to rise above 10% in the coming months. The bank also warned that the cost-of living crisis could plunge the economy into recession in 2022.

The monetary policy committee (MPC) voted by a majority to raise its base rate, lifting the cost of borrowing to the highest level in 13 years.


ALSO READ: Be realistic on interest rate decision, analysts tell CBN


Similarly, Gulf states whose currencies are tied to the dollar responded to the Fed with interest rate rises of their own.

Australia’s central bank also raised interest rates for the first time in more than a decade, following the lead of Asia-Pacific economies taking action to tame rising inflation. The Reserve Bank of Australia (RBA) raised the benchmark interest rate to 0.35 percent, up from a record low of 0.1 percent.

On its part, the Reserve Bank of India (RBI) raised the repo rate—at which it lends money to commercial banks, backed by with securities —by 40 basis points to 4.4%. The bank had reduced the rate to a record low of 4% during the Covid-19 pandemic.

Key Decisions

Mr Emefiele explained that at the MPC meeting, six out of the 11 members of the committee voted to raise the key rate.

The committee also voted to retain the asymmetric corridor at +100 and -700 basis points around the MPR, just as it maintained the Cash Reserved Ratio (CRR) at 27 per cent.

The committee consequently voted to retain all other parameters. He advised the various banks in the country and the Federal Government to redouble efforts in supporting monetary authority.

The CBN governor added that the sharp rise in inflation across both the advanced and emerging market economies has generated growing concerns among central banks across the world. He explained that the progressive rise in inflation driven by rising aggregate demands and wage growth has put sustainable pressure on price levels.

“Consequently, the major central banks such as the U.S. Fed, the Bank of England, European Central Bank, and Bank of Canada have provided strong guidance of a progressive shift away from monetary policy accommodation to drive market interest rate which may ultimately impact capital flows away from emerging market economies,” he said.

  • WhatsApp
  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • Share on Tumblr
  • Pocket



Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: Call Willie - +2348098788999






PT Mag Campaign AD

Previous Post

Davido, D’banj, Yemi Alade to perform at Africa Day Concert

Next Post

Good night Sango, the ultimate revolutionary, By Lanre Arogundade

Oladeinde Olawoyin

Oladeinde Olawoyin

Oladeinde Olawoyin reports Business & Economy, Development and Lagos Metro at PREMIUM TIMES. A First Class graduate of Mass Communication from the University of Ilorin, Ilorin, he was nominated in the journalism category of The Future Awards Africa in 2017. Aside maintaining a column titled ‘SATURDAY SATIRE’, he also writes art and culture pieces on weekends. Twitter: @Ola_deinde

More News

The Governor of Niger-State, Abubakar Sani Bello [PHOTO CREDIT: Official Twitter handle of Mr Bello || @abusbello]

Niger government suspends mining activities after deadly attack at Shiroro mine

July 4, 2022
Vitol Group wall logo [PHOTO: Vitol]

Nigeria’s NSIA signs $50 million deal with oil trader Vitol towards carbon reduction

July 4, 2022
A Nigerian Folklore Musician, Jimi Solanke

INTERVIEW: Why I look young, agile, vibrant and busy at 80 — Jimi Solanke

July 4, 2022
Allen Onyema Chairman/CEO of Air Peace Limited. [PHOTO CREDIT: Official Facebook page of AirPeace]

Allen Onyema: Alleged co-conspirator of Air Peace CEO pleads guilty to $20m bank fraud

July 4, 2022
INEC office in Enugu razed down by gunmen

Gunmen raze INEC office in Enugu

July 4, 2022
Illustration for Zamfara insecurity: Governor’s call to arm, a recipe for anarchy

EDITORIAL: Zamfara Insecurity: Governor’s call to arm, a recipe for anarchy

July 4, 2022
Next Post
Lanre Arogundade writes about the 6th amendement to the National Broadcasting Code.

Good night Sango, the ultimate revolutionary, By Lanre Arogundade

Okowa, Ibori, Sheriff Oborevwori, David Edevbie, Omo-Agege, Kenneth Gbagi, Senator James Manager and Deputy Governor Kingsley Otuaro

Delta Governorship Primaries: Ibori, Okowa battle for supremacy in PDP

Leave Comment

Search

AUN-PT Ad




Access Bank Ad







Subscribe to News via Email

Enter your email address and receive notifications of news by email.

Join 1,905,369 other subscribers.

Advertisement




netherland biz school Advert



ADVERTISEMENT

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

No Result
View All Result
  • #PandoraPapers
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Health
    • COVID-19
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Investigations
    • Investigations
    • Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • #EndSARS Dashboard
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • AUN-PT Data Hub
  • Opinion
  • The Membership Club
  • DONATE
  • About Us
  • Advert Rates
  • PT Hausa
  • Dubawa NG
  • Careers
  • Contact Us
  • Digital Store

All content is Copyrighted © 2020 The Premium Times, Nigeria

Our website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.