Nigeria Interest Rate

The Central Bank of Nigeria unanimously decided to further increase its benchmark interest rate by 50 bps to a new record high of 27.25% on September 24th, 2024, marking the fifth consecutive hike this year. The decision aimed at quelling inflation, supporting the naira and attracting investments. Governor Olayemi Cardoso emphasized that multiple rate hikes have helped to moderate inflation and reiterated the bank's commitment to bring inflation under control. The MPC noted that even though headline inflation trended downwards due to a moderation in food inflation, core inflation has remained elevated, driven primarily by rising energy prices. Furthermore, new pressures from devastating floods in the country’s food-producing regions have emerged, potentially pushing prices higher.