The Central Bank of Nigeria increases the interest rate to 26.25% from 24.75%
In a bid to tackle soaring inflation and stabilize the economy, Nigeria’s Central Bank has taken decisive action by implementing its third consecutive interest rate hike. The monetary policy committee of the Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate (MPR), a key benchmark for interest rates, raising it from 24.75 percent to 26.25 percent.
This move comes at a critical juncture for Nigeria, as the nation grapples with a staggering inflation rate of 33.69 percent recorded on May 15, primarily fueled by a relentless surge in food prices. With inflationary pressures mounting, the CBN has opted to adjust the MPR, which serves as the baseline interest rate in the country’s financial system, influencing the rates set by commercial banks.
During a press conference held in Abuja on Tuesday, CBN Governor Olayemi Cardoso unveiled the rate adjustment, highlighting the committee’s commitment to addressing the prevailing economic challenges. This decision underscores the central bank’s proactive stance in managing monetary policy to safeguard the stability and resilience of Nigeria’s financial landscape.
The latest hike marks the third consecutive upward adjustment to the benchmark rate by the apex bank this year, signaling a determined effort to curb inflationary pressures and steer the economy towards a path of sustainable growth.
