The Central Bank of Nigeria’s Monetary Policy Committee (MPC) has decided to raise the benchmark interest rate by 25 basis points to 18.75 percent.
Folashodun Shonubi, the Acting Governor of CBN, announced this decision during the fourth MPC meeting of the year on Tuesday.
In a press briefing in Abuja at the end of the two-day meeting, Mr. Shonubi explained that the committee voted to adjust the asymmetric corridor to +100 and -300 basis points around the MPR.
Before the MPC meeting, analysts had differing expectations following the suspension of Godwin Emefiele as the CBN governor.
The tightening cycle of the CBN’s monetary policy commenced in May 2022, with the benchmark interest rate rising from 11.5 percent to 18.5 percent earlier this year.
President Bola Ahmed Tinubu had previously advocated for reduced interest rates to boost investment and consumer spending and sustain economic growth.
Analysts have warned that inflationary pressure will persist unless the MPC takes aggressive measures to address the recent removal of fuel subsidy, increased energy prices, and exchange rate liberalization.