6 Talking Points Why CBN Raises Interest Rate to 26.25%
Fighting Inflation: The Central Bank of Nigeria (CBN) is raising interest rates to combat soaring inflation levels, which hit a staggering 33.69% in April 2024.
Third Time’s the Charm: This is the third consecutive interest rate hike in 2024, with previous increases to 22.75% in February and 24.75% in March.
Moderate Increase: The latest increase of 150 basis points to 26.25% is considered a moderate hike compared to the aggressive increases in the first quarter of 2024.
Price Stability: The CBN’s primary focus is to achieve price stability and rein in inflation, which has been a persistent challenge despite previous rate hikes.
Food Inflation: Food inflation has reached unprecedented levels, contributing significantly to the overall inflation rate.
Monetary Policy Committee Decision: The decision to raise interest rates was made by the Monetary Policy Committee, which voted in favor of the increase.
