Nigeria raises interest rates to 10.25%

by Richard Kilner

Story link: Nigeria raises interest rates to 10.25%

The Central Bank of Nigeria (CBN) has increased its Monetary Policy Rate (MPR) by 25 basis points, taking the rate from 10% to 10.25%.

With the increasing cost of food fuelling inflation, the CBN has made its move in an effort to stem the tide of rising prices.

Inflation has recently risen from 7.8% in March to 8.2% in April.

The MPR rate hike is not expected to have a substantial impact on the costs of lending for banks.

Recently liquidity has been scarce in Nigeria, and lending costs have soared by almost a third, making the quarter point MPR rise less significant by comparison.