For the fourth times in 2024, the Central Bank of Nigeria (CBN) increased the Monetary Policy Rate (MPR), which measures interest rates by 50 basis points, from 26.25% to 26.75%.
The monetary policy rate (MPR) is the baseline interest rate in an economy, which banks use to set their interest rates.
The CBN Governor, Olayemi Cardoso, announced this after the apex bank’s 296th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday.
Amidst the surge in food prices, the National Bureau of Statistics (NBS) on July 15 announced that the country’s headline inflation rate rose to 34.19% in June 2024. The June rate represents a 0.24% point increase from the 33.95% recorded in May 2024.
However, the latest increase in interest rates after the CBN’s 296th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, is the fourth consecutive time the apex bank will be raising the benchmark rate in 2024.
Recall that the CBN Governor, Cardoso, after chairing his maiden Monetary Policy Committee (MPC) meeting in February 2024, since he assumed office in September 2023, announced that MPR has been raised from 18.75% and by 400 basis points to a record 22.75%.
The CBN governor again in March 2024, announced that the MPR has been raised by 200 basis points to 24.75%.
On May 21st, 2024, the CBN raised the baseline interest rate for the third consecutive time from 24.75% to 26.25%.
