ABUJA, Nigeria (CHATNEWSTV) — The Central Bank of Nigeria (CBN) has increased the nation’s interest rate by 25 basis points, raising it to 27.50% in November from 27.25% in September 2024. This move comes as inflation pressures persist, with the country’s inflation rate reaching 33.87% in October 2024.
CBN Governor Olayemi Cardoso announced the decision at a press conference on Tuesday, following the 298th meeting of the bank’s Monetary Policy Committee (MPC) in Abuja.
“The Committee was unanimous in its agreement to raise the monetary policy rate by 25 basis points to 27.50 percent,” Cardoso stated, emphasizing that the adjustment aims to curb the rising inflationary trend.
This latest hike marks the sixth increase in Nigeria’s interest rate since February 2024, as the CBN continues to combat inflation and stabilize the economy. Despite the adjustment in the interest rate, the MPC opted to maintain other key financial indicators.
“We have decided to keep the Cash Reserve Ratio (CRR) at 50 basis points, the liquidity ratio at 30 percent, and the asymmetric corridor at +500/-100 basis points around the Monetary Policy Rate,” Cardoso said. He noted that these measures are crucial for maintaining financial stability and ensuring that the impact of inflation is mitigated.
The CBN had previously raised the interest rate by 50 basis points in September 2024 to 27.25%, reflecting a consistent tightening trend in response to economic pressures.
Cardoso affirmed the bank’s commitment to managing inflation and fostering economic stability. “Our primary focus remains to ensure price stability and sustain the confidence of both domestic and international investors,” he added.
Analysts expect the latest increase to influence borrowing costs and potentially slow down consumer spending, a common strategy used by central banks to manage inflation.
