ABUJA, Nigeria – The Central Bank of Nigeria, CBN, has once more decided to hike its interest rate, marking the third such consecutive increase.
The benchmark interest rate now stands at 18.5 percent, a rise from the preceding 18 percent.
The announcement was made by Godwin Emefiele, the governor of the Central Bank of Nigeria, after the monetary policy committee meeting held on Wednesday, May 24, 2023, at the CBN headquarters.
Explaining the decision, Mr. Emefiele stated, “After careful consideration of the current economic landscape, we have taken the decision to raise the monetary policy rate.
Our aim remains to regulate the money supply in our economy, stabilize prices, and manage our exchange rates.”
This is the third time the apex bank has adjusted its monetary policy rate (MPR), an important tool which measures the interest rate, in a series of steps taken to manage inflation and foster economic stability.
Financial analysts are closely watching the impact of this adjustment on Nigeria’s economy, a nation grappling with increasing inflation and economic instability in recent years.
“This is a strategic move by the Central Bank of Nigeria,” said Dr. Olubunmi Adejumo, a renowned economist and financial analyst.
“This hike in interest rates might seem small, but it’s significant. It’s an indication that the CBN is committed to reigning in inflation and stabilizing the economy.”
Nevertheless, some critics have expressed concern that the repeated interest rate hikes could further suppress economic growth and make borrowing more costly for businesses and consumers.
As Nigeria navigates the stormy seas of economic fluctuations, the actions of its Central Bank continue to shape the financial landscape, stirring both commendation and controversy.
