The Central Bank of Nigeria (CBN), on Tuesday, raised its Monetary Policy Rate (MPR) to 12 percent from 11 percent.
The increment was an outcome of a 2-day meeting by the Monetary Policy Committee (MPC) of the CBN.
The meeting which is the second for the year 2016, started on Monday in Abuja, the nation’s capital.
CBN Governor, Mr. Godwin Emefiele, Emefiele said that the decision to tighten money supply was because the balance of risk was against inflation.
The Bank also increased the portion of customers’ deposits that banks must keep as cash, known as the Cash reserve ratio, to 22.5 percent from 20 percent, while it retained the liquidity ratio (LR) at 30 percent.