At the March Monetary Policy Committee (MPC) meeting, the Central Bank of Nigeria (CBN) increased the benchmark interest rate by 200 basis points, raising it from 22.75 percent to 24.75 percent.
Recently, the CBN has further raised the interest rate by 150 basis points, bringing it to 26.25 percent.
This decision was announced by the Governor of the CBN, Yemi Cardoso, who also serves as the Chairman of the MPC.
The announcement was made at the conclusion of the 295th MPC meeting held in Abuja.
Throughout this year, the MPC has adopted a hawkish stance to address Nigeria’s persistent inflation issues.
As of April, the country’s inflation rate had escalated to 33.69 percent. In light of this, several analysts had anticipated a rate hike, although some speculated that the apex bank might opt for a hold stance due to the month-on-month moderation in the growth rate of inflation.
