CBN Increases Interest Rate to 27.50% Amid Concerns Over Economic Impact

The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) from 27.25% to 27.50%, a decision announced by Governor Olayemi Cardoso at the conclusion of the Monetary Policy Committee (MPC) meeting held today in Abuja.

Governor Cardoso revealed that 11 out of 12 committee members supported the hike during the 154th MPC meeting. The increase comes just two months after the CBN raised the MPR from 26.75% to 27.25%.

The decision to raise interest rates has drawn mixed reactions. While the CBN cites the move as necessary to tackle inflationary pressures, small business owners have expressed concerns about its potential to stifle growth. Critics argue that higher interest rates could contract businesses, force firms to downsize, and lead to job losses.

The briefing is still ongoing, and further details are expected to shed light on the CBN’s reasoning and its plans to mitigate the potential impact on the economy.