BREAKING NEWS: CBN increases interest rates to 14%
It, however, left the Cash Reserve Ratio and the Liquidity Ratio unchanged at 22.5 per cent and 30 per cent respectively.
The CBN Governor, Mr Godwin Emefiele, who announced the decision of the committee after a two-day meeting said five out of the eight members that attended the meeting voted in favor of monetary tightening.
The remaining three members, according to him, voted to hold the rate at 12 per cent.
The Monetary Policy Rate is the anchor rate at which the CBN, in performing its role as lender of last resort, lends to Deposit Money Banks to boost the level of liquidity in the banking system.
In taking the decision to increase MPR, the governor said the committee was faced with two policy choices whether to stimulate growth or to fight inflation.
He, however, said when considered from the standpoint that the primary mandate of the CBN is to maintain price stability, the committee decided to focus on its mandate by checking inflationary pressures.