In an unexpected move, Nigeria’s central bank has raised its benchmark lending rate to 27.25%, up from 26.75%. Central Bank Governor Olayemi Cardoso announced that the decision made by the monetary policy committee (MPC) was unanimous.
This marks the fifth consecutive rate hike this year, following increases of 50 basis points in July, 150 basis points in May, 200 basis points in March, and a significant 400 basis points in February—the largest hike in nearly 17 years.
Many analysts had anticipated that the central bank would maintain the current rates, especially after inflation declined for the second month in a row in August. Additionally, the naira currency has stabilized, aligning closely between the official and parallel markets following the bank’s resumption of regular dollar sales to dealers aimed at supporting the currency.
