The Central Bank of Nigeria, CBN Monetary Policy Committee, MPC has decided to raise the Monetary Policy Rate, MPR to 17.5% as committee members voted to sustain the fight against inflation.
Governor Godwin Emefiele who announced the MPC decision at the end of the first meeting of the year said the decision was upon the global and local conditions which made it untenable to loosen the rein on inflation despite four successive hikes in the last MPC meetings.
While noting that all 12 members were unanimous in the view to still guard against inflation, Emefiele said that they were, however, divided on whether to mount an aggressive fight against inflation or a moderate fight.
Emefiele who said that the apex bank projects the economy to grow by 2.88% in 2023, however, expressed concern that the month on month rise in December tempered with the year on year drop in inflation.
“With inflation at 21.3% we cannot afford to celebrate,” Governor Emefiele said in reaction to the drop on year-on-year inflation from 21.4%.