CBN raises interest rate to 26.25%

James

The monetary policy rate (MPR), which sets interest rates, was increased from 24.75 percent to 26.25 percent by the Central Bank of Nigeria's (CBN) monetary policy committee. This comes after the spike in food prices caused Nigeria's inflation rate to reach 33.69 percent.The monetary policy rate increase was announced by CBN Governor Olayemi Cardoso at a press conference on Tuesday, May 21. Banks base their interest rate decisions on the monetary policy rate (MPR), which serves as the economy's benchmark interest rate. The benchmark rate will be increased by the top bank for the third time this year. The benchmark rate was raised by 200 basis points, from 22.75 percent to 24.75 percent, at the MPC meeting in March.