The Monetary Policy Committee of the Central Bank of Nigeria on Tuesday again raised the Monetary Policy Rate from 24.75 percent to 26.25 percent.
Following a two-day meeting, the bank’s Monetary Policy Committee (MPC) decided to increase the Monetary Policy Rate (MPR) for the third consecutive time in an effort to curb the country’s soaring inflation, which reached 33.69 percent in April 2024.
However, Nigerians have reacted with an outcry as the CBN raised interest rates for the third time in four months to 26.25 percent.
One said, “You are hurting businesses especially SMEs. Fighting inflation this way won’t bring any value to Naira. Because we don’t have enough farmers producing more food. More Naira to buy less food.”
Yet another, “How many businesses can bear this rate? Rate hikes have no direct pass through on inflation in Nigeria! It’s not helping to tame CPI! Y’all need to attack inflation from another angle!”
Another said, “This rate increment will worsen the credit market for manufacturers but of course DMBs will increase theirs to almost 40%.”
And, “Inflation is caused by cost push and not due to excess of naira in circulation, all these are adding up to strangle the economy more.
“How will businesses survive this? This is not looking good for the productive sector.”
