CBN raises interest rate to 18.75%, says FX market will stabilise

The Central Bank of Nigeria (CBN) has raised its benchmark interest rate, known as the Monetary Policy Rate (MPR), by 25 basis points to 18.75 percent.

The decision was announced on Tuesday by Folashodun Shonubi, acting governor of the CBN, after the two-day Monetary Policy Committee (MPC) in Abuja.

Shonubi announced that a moderate hike of 20.5 basis points to the interest rate was agreed following considerations bordering on supporting investment, anchoring inflation expectations, narrowing the negative interest rate gap and improving investor confidence by the committee.