The Central Bank of Nigeria (CBN) has increased its Monetary Policy Rate (MPR), raising it to 27.25%. This decision was reached during the Monetary Policy Committee (MPC) meeting led by CBN Governor, Yemi Cardoso.
The move is part of the bank’s efforts to combat rising inflation and stabilize the economy. This comes after the CBN raised its MPR by 800 basis points in July 2024.
Cardoso said, “The committee was unanimous in its decision to further tighten policy and thus decided as follows, one: raise the MPR to 27.25 per cent.”
The Central bank’s decision was made at a time when inflation was slowing down and is expected to have a significant impact onNigeria’s economy. Financial analysts had predicted a pause in rate hikes due to easing inflation, but the apex bank chose to further tighten monetary policy.
This development is expected to impact borrowing costs for businesses and individuals, as well as the overall economic landscape.
