The Central Bank of Nigeria (CBN) has increased interest rates by 150 basis points, bringing the rate to 26.25% from the previous 24.75% set in March.
This move aims to address the country’s rising inflation.
CBN Governor Olayemi Cardoso announced the decision during the 295th Monetary Policy Committee (MPC) press briefing in Abuja on Tuesday.
He explained that the rate hike is a measure to curb Nigeria’s soaring headline inflation, which surged to 33.69% in April.
The CBN has been consistently tightening monetary policies to manage inflation. This 295th MPC meeting marks the third under Cardoso’s leadership, following his appointment in September last year.
In May 2023, Nigeria’s interest rate was recorded at 18.75%.
