(3 Minutes Read)
The apex bank recently hiked the Monetary Policy Rate (MPR) by 50 basis points, bringing it to 26.75 percent. This increment, part of a series of adjustments aggregating 800 basis points in 2024, comes against the backdrop of a stubbornly high inflation rate, which rose from 33.95 percent in May to 34.19 percent in June.
The Central Bank of Nigeria (CBN) has recently taken center stage amid surging inflation and economic challenges, positioning itself as a crucial player in the nation’s financial climate. It is committed to taking decisive actions to curb inflation and steering the economy towards stability.
The apex bank recently hiked the Monetary Policy Rate (MPR) by 50 basis points, bringing it to 26.75 percent. This increment, part of a series of adjustments aggregating 800 basis points in 2024, comes against the backdrop of a stubbornly high inflation rate, which rose from 33.95 percent in May to 34.19 percent in June.
This hike was a strategic effort to combat rising inflation, which had been steadily climbing. The MPR is crucial as it influences borrowing costs, investment decisions, and overall economic activity. By raising the MPR, the CBN aimed to curb inflation and stabilize prices.
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Rising costs of transporting farm produce, infrastructure bottlenecks, security challenges in food-producing areas, and the exchange rate pass-through all contributed to this relentless surge. The CBN faces the difficult task of taming food inflation without stifling economic growth.
