CBN raises interest rate to 26.25%

The Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), the benchmark interest rate from it’s previous percent to 26.25 percent.

The monetary policy committee of the CBN made the decision after Nigeria’s inflation rate rose to 33.69 percent amid the surge in food prices.

CBN’s governor, Olayemi Cardoso, announced the monetary policy rate adjustment at a news conference on Tuesday, May 21, during the committee’s 295th meeting in Abuja.

The monetary policy rate (MPR) is the baseline interest rate in an economy which banks use to set their interest rates.

This is the third consecutive time the apex bank will be raising the benchmark rate this year.

At the March MPC meeting, the benchmark rate increased by 200 basis points from 22.75 percent to 24.75 percent.