The Central Bank of Nigeria’s Monetary Policy Committee (MPC) has increased the monetary policy rate (MPR) from 24.75 percent to 26.25 percent. This decision, announced on Tuesday, May 21, by CBN Governor Yemi Cardoso during the committee’s 295th meeting in Abuja, sets a new benchmark for interest rates in the country.
The move comes in response to Nigeria’s rising inflation, which surged to 33.69 percent on May 15, driven largely by escalating food prices. The MPR serves as the baseline interest rate in the economy, influencing the rates at which banks lend to customers.
Governor Cardoso, who also chairs the MPC, stated that the rate hike aims to address the inflationary pressures and stabilize the economy. The committee’s decision reflects ongoing efforts to manage inflation and its impact on the cost of living for Nigerians.
By raising the MPR, the CBN hopes to curb inflationary trends and ensure economic stability, despite the challenging economic conditions currently facing the country.
