CBN Satisfies Investors Taste Hikes Rate Again To 24.75%

The Central Bank of Nigeria (CBN) has satisfied the taste of investors for attractive yield as it on Tuesday after the two-day Monetary Policy Committee (MPC) meeting raised its benchmark interest rate again by 200 basis points to 24.75 Percent.

Olayemi Cardoso, governor of the CBN, announced this in Abuja after the meeting. Most analysts have anticipated an increase in the Monetary Policy Rate (MPR) to rein in inflationary pressure.

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“Given the MPC’s strong position in addressing rising inflationary pressures, we expect the MPC to raise the MPR by 100bps to 150bps,” analysts at FBNQuest said.

“Our expectation is also supported by the need to maintain an attractive yield environment to sustain foreign investors’ interest in high-yielding fixed-income securities to facilitate the continuous appreciation of the Naira,” the analysts said.