The Central Bank of Nigeria(CBN) Monetary Policy Committee(MPC) has raised the interest by 50 basis points to 26.75 per cent cent from 26.25 per cent in May 2024.
Olayemi Cardoso, CBN Governor announced this at a press briefing on Tuesday at the end of the two-day 296th MPC in Abuja.
He said the decision to further increase the interest rate was to tackle the country’s rising core inflation and food inflation which stood at 34.19 per cent and 40.87 per cent, respectively in June.
According to him, members of the MPC are not oblivious of the need to address the rising prices of food in Nigeria, necessitating the interest rate hike.
Tthe implication of the interest rate hike is that businesses, farmers, manufacturers and investors will have to pay more to get loans from banks.
The 296th MPC meeting is the fourth time the interest rate has been increased since the appointment of Cardoso in September last year.
Thefrontrank reports that in May 2023, when President Bola Tinubu was inaugurated, Nigeria’s interest rate stood at 18.75 per cent while inflation rate stood at 22.41 per cent.
