The Monetary Policy Committee (MPC) of the Central Bank of Nigeria has voted to increase the benchmark interest rate by 25 basis points to 18.75 percent.
The CBN started its monetary policy tightening cycle in May 2022, with its benchmark interest rate rising from 11.5 percent to 18.5 percent in May this year.
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President Bola Tinubu had said interest rates needed to be reduced to increase investment and consumer purchasing in ways that would sustain the economy at a higher level.
Analysts say that with the recent removal of fuel subsidy, the increase in energy prices, and the liberalisation of the exchange rate, inflationary pressure will persist unless the MPC considers options that will deal with the pressure aggressively.
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