CBN INCREASES INTEREST RATES DESPITE INCREASING INFLATION—BREAKING

Babatunji Wusu –

Interest rates were increased by 150 basis points by the Monetary Policy Committee of the Central Bank of Nigeria (CBN), to 26.25 percent from 24.75 percent in March.
Olayemi Cardoso, the governor of the CBN, declared on Tuesday that the decision was made in response to the nation’s escalating inflation problem.

Cardoso stated that containing the rising headline inflation—which hit 33.69 percent in April—is the main goal of the interest rate hike during the 295th MPC press briefing, which was conducted in Abuja today.

Monetary policies have been used by the central bank on a regular basis to fight inflation.

This MPC meeting is the third that Cardoso has presided over since taking office in September of last year. Nigeria’s interest rate was 18.75 percent as of May 2023.