The Central Bank of Nigeria (CBN) has again raised its Monetary Policy Rate (MPR), the benchmark interest rate on which every other interest rate used within the economy is built, to 27.50 per cent from 27.25 per cent.

The 25 basis points hike announced at the end of the CBN’s Monetary Policy Committee (MPC) meeting on Tuesday is in line with the apex bank’s ongoing effort to tame persistent inflationary pressures.

Nigeria’s inflation rate resumed its upward climb in September 2024, advancing to 32.70 per cent year-on-year, after it eased to 33.40 per cent in July and 32.15 per cent in August from a peak of 34.19 per cent in June. In October 2024, the inflation rate inched higher to 33.88 per cent, according to data from the National Bureau of Statistics.

The MPC had raised the MPR to 27.25 per cent in September, up 50 basis points from 26.75 per cent announced by the apex bank in July 2024.

These monetary policy tightening measures do not, however, seem to be working as inflation continues to spike, further eroding the purchasing power of Nigerians.

Announcing the latest rate hike on Tuesday, the CBN governor, Olayemi Cardoso, said, “The meeting was held on the backdrop of renewed inflationary pressures as headline of food and core measures rose year on year in October 2024. Members agreed to remain focused in addressing price developments.”

The hike did not come as a surprise to market watchers who had anticipated it following five consecutive hikes this year.