The Central Bank of Nigeria (CBN) on Tuesday increased the overall interest rate to 17.5 per cent despite the deceleration of inflation in December 2022.
The Monetary Policy Committee (MPC) took the decision on Tuesday at the first meeting of 2023 citing fears of further rise in inflation, Daily Independent reports.
In the last MPR meeting, the CBN hiked the interest rate to 16.5 per cent to curb inflation which rose to 21.09 per cent in October 2022.
After the CBN increased MPR in November 2022, Maximum Lending Rate in Nigeria rose to 29.13 per cent in December from 28.14 per cent held in November.
Read Also: Spotify To Cut 6% Of Its Workforce
Prime Lending Rate also rose from 13.17 per cent in November to 13.85 per cent in December of the same year.
Godwin Emefiele, the CBN Governor said on Tuesday that the decision was taken due to progresses in inflation.