Again, Yemi Cardoso-Led CBN Raises Interest Rate to 26.25%

Newsone Nigeria reports that the Monetary Policy Committee of the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), which benchmarks interest rates, from 24.75 percent in March to 26.25 percent to tackle rising inflation.

The CBN Governor, Olayemi Cardoso, announced the rate adjustment at a news conference on Tuesday, May 21, 2024, during the committee’s 295th meeting in Abuja, the nation’s capital.

This online news platform understands that the MPR is the baseline interest rate in an economy, every other interest rate used within the economy is built on it.

The apex boss said the decision to raise the interest rate was to tame the country’s soaring headline inflation which increased to 33.69 percent in April.

Newsone reports that the Interest Rate hike is the third monetary policy decision made by the committee since Cardoso assumed office on September 26, 2023.

CBN had continued tightening of monetary instruments to bring down inflation. In May 2023, Nigeria’s interest rate stood at 18.75 percent.

The 295th MPC meeting is the third since the appointment of Cardoso in September last year.

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