In response to soaring inflation rates, the Central Bank of Nigeria (CBN) has announced a significant increase in the monetary interest rate, raising the benchmark from 18.75% to 22.75%. This move, decided upon by the Monetary Policy Committee (MPC) during its recent meeting, reflects a 400 basis point hike aimed at curbing the rampant inflation currently pegged at 29.9%.

Additionally, the MPC has elevated the Asymmetric Corridor to +100 -700, indicating a tightening stance on monetary policy. These measures signify a decisive effort by the CBN to address the persistent inflationary pressures gripping the Nigerian economy.

The decision to implement such drastic measures underscores the urgency of the situation and the CBN’s commitment to maintaining price stability and preserving the value of the Nigerian currency. While further details are yet to be released, the market awaits comprehensive insights into the rationale behind these policy adjustments and their anticipated impact on the economy.

Credit: The Guardian