On Tuesday, the Central Bank of Nigeria (CBN) raised the Monetary Policy Rate to 18 per cent, up from 17.5 per cent, a decision that surprised many.
Since April 2022, the central bank has been raising the MPR, which serves as a benchmark for lending rates. Moving it upward from 11.50 per cent to the current level of 18 per cent.
The CBN’s Monetary Policy Committee (MPC), which is tasked with setting the rate, is waging a war against inflation which stands at 21.91 per cent, against 17.35 per cent when the CBN started tightening the monetary environment.
