Nigeria’s Central Bank Considers Interest Rate Hike at Upcoming MPC Meeting

As the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting is set to take place on February 26 in Abuja, there is a growing expectation that the country’s interest rate may be increased.

This two-day meeting, the first since the appointment of CBN Governor Olayemi Cardoso in September 2023, comes at a crucial time for Nigeria’s economy.

With the inflation rate reaching 29.90 per cent in January 2024, the MPC is expected to tighten the monetary policy rate in an effort to combat the rising inflation.

Financial experts, such as Bismarck Rewane, the Chief Executive Officer of the Financial Derivatives Company, have predicted that the committee may tighten the interest rate by at least 200 basis points.

The last MPC meeting, held in July 2023 under the former acting CBN governor, Mr Folashodun Shonubi, saw the country’s interest rate at 18.75 per cent.

The current economic climate, marked by high inflation, has led to speculation that the interest rate may be increased in the upcoming meeting.

In a move to address Nigeria’s economic challenges, President Bola Ahmed Tinubu recently established an economic advisory committee composed of the country’s business leaders.

This committee aims to develop strategies to mitigate the economic difficulties Nigeria is currently facing.

As the MPC meeting takes place, all eyes will be on the decision made by the committee, as it could have a significant impact on Nigeria’s economy and the lives of its citizens.

The outcome of the meeting may provide valuable insights into the country’s future economic direction and the measures taken to address the challenges it faces.