The Central Bank of Nigeria (CBN) is set to hold its first Monetary Policy Committee (MPC) meeting under the leadership of the new Governor, Olayemi Cardoso, on February 26-27, 2024.
This announcement comes as the country grapples with soaring inflation rates and economic challenges.
The MPC, responsible for formulating monetary and credit policy in Nigeria, will convene for one of the six scheduled meetings planned for the year.
The last MPC meeting occurred in July, during which the benchmark interest rate was raised to a record high of 18.75% in an effort to curb rising inflation, which stood at 23% at the time.
Since the last meeting, inflation has surged even further, reaching 28.9%, the highest level in nearly three decades.
Contributing factors include increased fuel costs after the removal of a gasoline subsidy, elevated food prices, and a weakened national currency.
Analysts anticipate significant rate hikes during the upcoming MPC meeting to address inflation concerns and restore positive real interest rates.
The current economic challenges have prompted a need for policy adjustments to stabilize the financial landscape in Nigeria.
