CBN raises interest rate to 26.25%

The Central Bank of Nigeria’s Monetary Policy Committee (MPC) has increased the monetary policy rate (MPR), which serves as the benchmark for interest rates, from 24.75 percent to 26.25 percent.

The decision was announced on Tuesday, May 21, by the governor of the Central Bank of Nigeria, Yemi Cardoso, who also chairs the MPC, during the committee’s 295th meeting held in Abuja.

On May 15, Nigeria’s inflation rate rose to 33.69 percent amid the surge in food prices.

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