Central Bank of Nigeria Raises Monetary Policy Rate to 26.25% in Third Consecutive 2024 Hike
Central Bank of Nigeria, Image sourced from the work of Ei’e ke, licensed under Creative Commons Attribution-Share Alike 4.0 International.

The Central Bank of Nigeria raised its Monetary Policy Rate by 150 basis points to 26.25% at its May 2024 meeting, citing consumer price inflation above 33% and weakness in the naira. The decision marks the third consecutive rate increase delivered by the CBN's Monetary Policy Committee so far in 2024.

The naira lost value against the US dollar in the months preceding this decision, following the authorities' move to unify the country's multiple exchange rate windows.

EXCHANGE RATE

The CBN has indicated that restoring a measure of exchange rate stability is a prerequisite for sustainable disinflation.

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