Breaking News: CBN hikes benchmark rate to 14 percent

CBN

The Central Bank of Nigeria (CBN) in a surprise move raised its benchmark interest rate by a 200 basis points to 14 percent on Tuesday while maintaining its existing cash reserve ratios for commercial banks all in a bid to stabilize the naira.

Cash reserve ratio (CRR) and liquidity ratio were maintained at 22.5 percent and 30 percent respectively.

Analyst had predicted that CBN would raise interest rates by 100 basis points to 13 percent.

Speaking after the monetary policy committee (MPC) meeting in Abuja on Tuesday, Godwin Emefiele, governor of the bank, said the committee voted to hike interest rates in the face of rising inflation.

Further more, Emefiele stated that an economic recovery in the economy in the second quarter of this year was unlikely.