The Central Bank of Nigeria has raised the monetary policy rate from 18.5 to 18.75 percent.

The acting Governor of the Bank, Mr Adebisi Folasodun announced the rate hike at a news briefing following at the end of the Monetary Policy Committee meeting in Abuja.

This continues what has now become a consistent action as the rate hike represents the eighth straight increase by the committee.

According to the acting governor, who presided over the first MPC meeting since his appointment, the decision to raise the rates was supported by six out of the eleven members of the monetary policy committee in attendance.

The five other members voted to hold the rates constant.

Mr. Folasodun said the decision to raise the rates was in furtherance of its efforts to rein in inflation which currently stands at 22.79 percent.

On the foreign exchange situation, Mr. Folasodun said what the bank sought to achieve was not a unification of rates but to ensure efficiency in the market.

He said what was being experienced in the forex market was a result of pent up demand and expressed optimism that the demand would soon cool off with a positive appreciation of the naira.

Meanwhile, he said bank was keenly observing the situation and would intervene where necessary.