Breaking: CBN Increases Interest Rate to 27.50%

• CBN raised the MPR to 27.50%, up from 27.25%.
• The decision was made following the Monetary Policy Committee meeting in Abuja.
• The MPR had previously been increased to 27.25% in September.
• 11 out of 12 MPC members supported the latest rate hike.
• Small business owners are concerned that the rate hike could harm businesses and lead to job losses

The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) to 27.50%, up from 27.25%. This decision was announced by CBN Governor, Mr. Olayemi Cardoso, at the conclusion of the Monetary Policy Committee (MPC) meeting in Abuja this afternoon. The post-MPC briefing is currently ongoing, with further details expected.

In September, the CBN had previously increased the MPR by 50 basis points, from 26.75% to 27.25%, while maintaining the asymmetric corridor of +500/-100 basis points.

Cardoso confirmed that the decision to further raise the rate was supported by 11 of the 12 MPC members present at the meeting. However, small business owners have expressed concerns, labeling the rate hike as unfortunate. They argue that it could lead to a contraction in business activities, downsizing, and potential job losses..