December 2022 inflation hit a 22-year high of 54.1 percent.
Of keen interest to businesses is the policy rate, which signals the rate at which the central bank will lend to commercial banks.
This influences the average loan rates on loans to individuals and businesses.
“In the interim, the MPC sees the need to remain cautious and moderate liquidity in the system to underpin ongoing macroeconomic adjustments to drive inflation on a downward path. In the circumstances, the committee decided to raise the policy rate by 100 basis points to 28 percent.
The prime rate of interest to businesses refers to the rate at which the central bank lends to commercial banks.
This subsequently influences the average lending rates on loans to individuals and businesses.