Nigeria’s Monetary Policy Committee (MPC) has raised the Monetary Policy Rate (MPR) to 27.5% in November 2024, marking the sixth consecutive increase since February 2024. This series of hikes aims to combat surging inflation, which reached 33.88% in October 2024.
While specific global rankings fluctuate, such a high MPR suggests that Nigeria’s interest rate is among the highest worldwide. Comparatively, most countries maintain significantly lower benchmark rates; for instance, as of late 2024, the United States Federal Reserve’s rate ranged between 5.25% and 5.50%. This stark contrast underscores the aggressive monetary tightening by the Central Bank of Nigeria to address persistent inflationary pressures.
The MPC’s decision reflects concerns over renewed inflationary trends, particularly in food and core inflation measures. The committee emphasized its commitment to addressing these price developments to stabilize the economy.
It’s essential to monitor how these elevated interest rates impact various sectors of the Nigerian economy, including borrowing costs, investment activities, and overall economic growth.
