The Monetary Policy Committee (MPC) unanimously decided to raise Nigeria’s benchmark lending rate from 26.75% to 27.25% on Tuesday, shocking the market.
Laptops 1000Following rises of 50 basis points (bps) in July, 150 bps in May, 200 bps in March, and 400 bps in February—the most in about 17 years—the committee’s decision marks the fifth consecutive rate hike this year.
After inflation declined for a second straight month in August and the naira held steady, convergent on both the official and parallel markets after the bank resumed regular dollar sales to dealers to help stabilize the currency, analysts had widely predicted the central bank would hold rates steady.
