“Nigeria’s Central Bank Raises Benchmark Interest Rate to 26.25% in Battle Against Inflation”

Date:

The Central Bank of Nigeria (CBN) has taken decisive action by raising its key interest rate to a new record high in an effort to combat persistent inflation and stabilize the nation’s currency. During the 11th consecutive monetary policy committee meeting, the benchmark rate was increased from 24.75% to 26.25%, surpassing economists’ median estimate of 25.75%¹.

Thank you for reading this post, don't forget to subscribe!

Governor Olayemi Cardoso emphasized that the primary focus of the MPC was to achieve price stability by utilizing available tools to rein in inflation. Meanwhile, the yield on Nigeria’s $1.5 billion of eurobonds declined slightly to 8.83% in London¹.

Bloomberg Economics views this rate hike as a significant step in the battle against inflation, with policymakers signaling confidence in their ability to address price increases. Looking ahead, they anticipate one final rate hike in July, after which inflation is expected to gradually ease¹.

However, challenges persist. A threefold increase in electricity tariffs, elevated food costs, and a 27% depreciation of the naira in the past month continue to contribute to inflationary pressures. Foreign exchange volatility remains a concern, reflecting the delicate balance between supply and demand in the market¹.

Carlo Morelli, a senior portfolio manager, attributes the naira’s recent struggles to dollar scarcity in the local market and the central bank’s efforts to stabilize the currency¹.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

Share post:

Subscribe

Popular

More like this
Related

Rema’s ‘Calm Down Makes History, Becomes First African Song to Earn 1 Billion Streams in US

June 17, 2024. Azonuchechi Chukwu. Nigerian singer, Divine Ikubor, aka Rema’s...

Suspected Armed Robbers Gun Down DJ in Abuja

June 17, 2024. Azonuchechi Chukwu. Suspected armed robbers attacked the Volcano...

Gunmen Attack Enugu community shoot four

June 17, 2024. Azonuchechi Chukwu. Gunmen on Saturday attacked the Umu-Ezuboke...