How CBN’s rate hike aligns with four countries’ that held MPC meeting in MayRIDING on the belief that Central Banks are mostly aligned, the recent 150 basis points Monetary Policy Rate (MPR) hike of the Central Bank of Nigeria (CBN) after 70 months, has conformed with Central Banks of four countries that have held Monetary Policy Committee (MPC) meetings in May 2022. The Monetary Policy Committee of the Central Bank of Nigeria on Tuesday, May 24, 2022 voted unanimously to raise the benchmark interest rate to 13 per cent after two years of expansionary monetary policy. Available records show that the United States (US) also raised the interest rate to 1.0 per cent with inflation down to 8.3 per cent. According to the Lagos-based Financial Derivatives Company (FDC) Limited, 36 countries raised interest rates in the penultimate month with only Russia reducing interest rates after it had increased rates to 12 per cent per annum (p.a) earlier to protect its currency. Interest rates hovered near unprecedented lows in most advanced economies for the past decade and in some cases went negative.

Source: Nigerian Tribune June 06, 2022 05:48 UTC