The Central Bank of Nigeria (CBN) has raised its Monetary Policy Rate from 26.75% to 27.25% to control rising inflation. CBN Governor Olayemi Cardoso announced this decision after the Monetary Policy Committee’s 297th meeting. The increase is aimed at stabilizing the economy by curbing inflationary pressure.
The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) from 26.75% to 27.25%. This change was announced by the CBN Governor, Olayemi Cardoso, following the 297th meeting of the Monetary Policy Committee (MPC) in Abuja on Tuesday.
The move is part of efforts to tackle Nigeria's ongoing inflation problem. By increasing the MPR, the central bank aims to limit excess liquidity in the economy and reduce inflationary pressure. This measure is expected to have an impact on borrowing costs, making loans more expensive for consumers and businesses.
Governor Cardoso explained that the rate adjustment is necessary to stabilize prices and ensure long-term economic stability. The rate hike is part of the CBN's broader strategy to control inflation, which has been a significant issue in the country’s economy.
Rising inflation has affected household incomes and business operations, with higher prices being felt across various sectors. Though this rate hike may slow borrowing, the expectation is that it will reduce inflation in the future, providing relief for Nigerians dealing with rising costs.
Further insights are expected from economic experts and analysts as the country responds to this latest policy action from the CBN.
