CBN raises interest rate to 14%, warns banks

Against expectations of financial analysts that the Monetary Policy Rate would remain unchanged at 12 per cent, the Monetary Policy Committee of the Central Bank of Nigeria on Tuesday hiked the MPR by 200 basis points to 14 per cent.

The 14 per cent MPR announced by the CBN is the highest in over a decade.

However, the committee left the Cash Reserve Ratio and the liquidity ratio unchanged at 22.5 per cent and 30 per cent, respectively.

Against expectations of financial analysts that the Monetary Policy Rate would remain unchanged at 12 per cent, the Monetary Policy Committee of the Central Bank of Nigeria on Tuesday hiked the MPR by 200 basis points to 14 per cent.

The 14 per cent MPR announced by the CBN is the highest in over a decade.

However, the committee left the Cash Reserve Ratio and the liquidity ratio unchanged at 22.5 per cent and 30 per cent, respectively.