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The Central Bank of Nigeria on Tuesday raised its benchmark lending rate to 18.75 per cent from 18.5 per cent.

The apex bank made this known after the two-day Monetary Policy Committee (MPC) meeting.

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The acting CBN governor, Folashodun Shonubi, who chaired the meeting, noted that “hiking the interest rate has made a lot of difference in moderating the rate of inflation”.

While addressing journalists Tuesday, Mr Shonubi said the committee voted to keep the asymmetric corridor at +100 and -300 basis points around the MPR.

He also disclosed that the MPC voted to keep the Cash Reserve Ratio (CRR) at 32.5 per cent while the Liquidity Ratio was retained at 30 per cent.

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According to him, the option to continue the hike in policy rate, albeit moderately, also presented a strong alternative premised on the expected liquidity injections into the economy from the recent efforts to unify the nation’s foreign exchange markets.

He said the committee was conscious of the decision as members raised concerns over the need to support investment which will ultimately lead to growth.

The MPC was of the view that the recent policy on foreign exchange market reform would increase market transparency and encourage more foreign capital inflows, he noted.

This is the first MPC meeting being chaired by Mr Shonubi since he assumed office as the apex bank’s acting governor after the suspension of Godwin Emefiele from office.

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