Today’s big stories:
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Another MPR hike 📈
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CBN vs digital banks 🏦
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E-naira wallets are e-mpty
Here's what you need to know about the economy in 150 seconds.
1. Another MPR hike 📈
What’s happening?
The CBN has raised its monetary policy rate by 50 basis points— for the third time this year—to 18.5%, its highest since 2020.
What does this mean?
The CBN’s decision to raise MPR was made in order to curb rising inflation rate in the economy. Headline inflation rose to 22.22% in April 2023 from 22.04% recorded in March, its highest level since September 2005.
Why should we care?
The CBN cited evidence that if MPR was not raised in April, inflation could have risen to 30.48% as against 22.2%. Despite increasing rates since May 2022 (and causing an increase in borrowing costs), inflation has continued to rise. The CBN expects inflation to continue rising this year, which may mean even more monetary tightening in coming months.
2. CBN vs digital banks 🏦
What’s happening?
The CBN has revoked the licences of
