The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Tuesday raised the benchmark interest rate Monetary Policy Rate (MPR) by 100 basis points to 16.5 percent from 15.5 percent.

Briefing newsmen in Abuja after the MPC meeting, the Governor of the CBN, Godwin Emefiele said the majority of rate-setting committee members voted for the increase in the Monetary Policy Rate (MPR) Emefiele said the committee also retained the +100 and-100 asymmetric rates around the benchmark interest rate.

Emefiele attributed the hike to fear that spending during the forthcoming festive period, Christmas could further push the inflation rate and erode the gain from the previous tighten.

At 21.09 percent, inflation is already hurting growth at this level in Nigeria, that is the reason we are taking this very seriously.

Emefiele said with flooding, the CBN expects the impact to be minimal as the regulatory bank would embark on aggressive dry season planting as the flood recede so as to reduce the negative impact on food prices.