CBN Increases Interest Rate By 0.25% To Tackle Inflation

On Tuesday, the Central Bank of Nigeria (CBN) raised its benchmark interest rate by 25 basis points to 27.50%, continuing its battle against rising inflation.

The CBN made this decision after a two-day meeting of the Monetary Policy Committee (MPC) in Abuja. This is coming after a similar rate hike in September.

Despite concerns over rising petrol prices, CBN Governor, Olayemi Cardoso, emphasised the bank’s commitment to stabilising the economy.

CBN Interest rate

On Tuesday, the Central Bank of Nigeria (CBN) intensified its efforts to combat rising inflation by increasing its benchmark interest rate by 25 basis points, bringing it to 27.50%.

Read Also; Nigeria’s Petrol Woes Near End As Port Harcourt Refinery Resumes

In September, the CBN raised the Monetary Policy Rate (MPR) by 50 basis points to 27.25%, despite concerns that rising petrol prices could reignite inflation after two consecutive months of easing commodity prices.

Governor Olayemi Cardoso announced the latest rate hike after leading a two-day Monetary Policy Committee (MPC) meeting on Monday and Tuesday in Abuja.

The CBN’s actions demonstrate its determination to stabilise the economy and address persistent inflationary pressures, even as challenges like rising energy costs and global uncertainties persist.

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