The Central Bank of Nigeria has raised its benchmark interest rate to a record high of 27.25% in an effort to combat rising inflation and stabilize the national currency, the naira. This decision, announced by Governor Olayemi Cardoso on September 25, 2024, marks the 13th consecutive increase, surprising many financial analysts.
Only one out of twelve economists surveyed by Bloomberg anticipated this move, indicating a significant shift in the bank's monetary policy approach. The increase aims to address the ongoing economic challenges Nigeria faces, particularly the soaring inflation rates that have impacted consumers and businesses alike.
The implications of this rate hike extend beyond Nigeria, potentially influencing investment strategies and economic relations in the West African region. As Nigeria is one of Africa's largest economies, its financial policies are closely monitored by global markets.
Source: bloomberg.com