AGS NEWS – The Central Bank of Nigeria’s Monetary Policy Committee has raised the benchmark lending rate to 26.75 percent.

This decision was announced by CBN Governor Olayemi Cardoso after the 296th MPC meeting in Abuja on Tuesday.

The committee has maintained a hawkish approach to combat inflation, raising the rate by over 500 points this year. In May, the rate was set at 26.25 percent.

With inflation rising to 34.19 percent in June, up from 33.95 percent in May, the increase was necessary. This June figure is 11.40 percent higher than the same period in 2023, which stood at 22.79 percent.

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On a month-to-month basis, June’s inflation rate of 2.31 percent was higher than May’s 2.14 percent, indicating a faster rise in average prices.

Governor Cardoso reiterated the MPC’s commitment to price stability, emphasizing the need for continued tightening to control inflation.

Investment reports had anticipated this hike, with Cowry Asset Management predicting a 25-50 basis points increase, while Meristem forecasted a 100 basis points rise to 27.25 percent.

These projections underscored the committee’s focus on inflation control and sustaining capital inflow for a stable exchange rate system.