The Central Bank of Nigeria has raised the monetary policy rate by 200 basis points to 24.75%, lifting the benchmark rate to a record high. The decision was announced at the March 2024 Monetary Policy Committee meeting. The rate hike follows a prior increase earlier in the year that had brought the MPR to 22.75%.
Alongside the headline rate increase, the CBN announced a narrowing of the asymmetric corridor around the MPR to plus 100 basis points and minus 300 basis points. The corridor adjustment changes the boundaries within which overnight interbank lending rates are permitted to fluctuate.
BACKGROUND
Nigeria's inflation has been driven by pressures including the removal of the fuel subsidy, a devaluation and subsequent depreciation of the naira following the unification of the country's multiple exchange rate windows, and food price pressures. Governor Yemi Cardoso assumed office in late 2023.
GOVERNOR'S STATEMENT
Governor Olayemi Cardoso said the committee had chosen to continue tightening to rein in inflation.
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