The Central Bank of Nigeria (CBN) has increased its benchmark interest rate to 26.75 percent in a desperate attempt to tame Nigeria’s persistent inflation crisis. This represents a significant jump of .50 percentage points from the previous rate of 26.25 percent.
Nigeria has been grappling with double-digit inflation for several months, with prices of essential goods and services skyrocketing. This has led to widespread economic hardship for Nigerians. The rate hike comes as the country’s inflation rate surged to 34.19 percent last week.
The decision to raise the interest rate was reached at the Monetary Policy Committee (MPC) meeting of the CBN in Abuja on Monday, where members deliberated on the economic challenges facing the nation.
The CBN Governor, Olayemi Cardoso, acknowledged the impact of rising prices on households and businesses, and believes this measure will help to cool down the economy. Despite the recent uptick in inflation, the Committee expects prices to moderate in the near term.
—Ezinwanne Onwuka reports for TruthNigeria from Abuja.
