The Central Bank of Nigeria (CBN) has raised its Monetary Policy Rate (MPR) from 26.75 percent to 27.25 percent, marking a 50-basis point increase. This decision was announced by Olayemi Cardoso, the newly appointed governor of the CBN, during a press conference following the conclusion of the bank’s 297th Monetary Policy Committee (MPC) meeting, held in Abuja on Tuesday.

The MPR, which serves as the benchmark for interest rates in the country, was adjusted in response to ongoing inflationary pressures. Cardoso explained that the hike is aimed at reining in inflation, which has continued to challenge Nigeria’s economic stability.

“This decision is part of our broader efforts to address the rising inflation and ensure price stability in the economy,” Cardoso stated, emphasizing the need for proactive measures to stabilize the financial sector and protect consumer purchasing power.

The move comes as Nigeria grapples with persistent inflation, driven by rising fuel prices, food costs, and the weakening naira. Economic analysts suggest that this rate hike could lead to higher borrowing costs for businesses and individuals, but may be necessary to restore confidence in the market and curb the escalating cost of living.

The MPC meeting also highlighted other key economic indicators, with the CBN governor reaffirming the bank’s commitment to employing monetary policy tools to maintain economic stability.

This adjustment to the MPR follows a series of previous rate hikes implemented by the central bank over the past year as part of its efforts to address the country’s inflationary concerns.