The Central Bank of Nigeria (CBN) has increased the monetary policy rate (MPR) from 24.75% to 26.25%, in a bid to curb the rising inflation rate in the country.
This decision was announced by CBN Governor, Olayemi Cardoso, on Tuesday during the 295th meeting of the Monetary Policy Committee in Abuja.
This is the third consecutive time the apex bank has raised the benchmark rate this year, as it struggles to contain the soaring inflation rate, which rose to 33.69% in May. The increase in food prices has been a major contributor to the high inflation rate.
The monetary policy rate (MPR) serves as the baseline interest rate in the economy, and banks use it to set their interest rates. By raising the MPR, the CBN aims to reduce the amount of money in circulation and curb inflationary pressures.
The move is expected to have a ripple effect on the economy, as it may lead to higher interest rates on loans and credit facilities. However, it is hoped that this decision will help to stabilize the economy and bring inflation under control.
