Nigeria's Central Bank, in a bold move to combat rising prices, has hiked interest rates to a record-breaking 22.75%. This significant increase, the highest ever recorded in the country, comes as the nation grapples with inflation surpassing 29%.

The decision was announced by the Monetary Policy Committee (MPC) after a two-day meeting. The committee also opted to maintain the Cash Reserve Ratio (CRR) at 45% and the Liquidity Ratio at 30%.

Governor Olayemi Cardoso attributed the inflation surge to various factors, including:

• Rising energy costs
• High fiscal deficits
• Lingering insecurity in food-producing regions
• Global factors like tight financial conditions and trade disruptions

While acknowledging the upward trend in inflation is expected to continue, Cardoso expressed optimism that it will eventually decline. He emphasized the MPC's commitment to implementing measures to boost investor confidence, attract capital inflows, and monitor both domestic and global economic developments.

Key Points:

• Interest rate raised to 22.75%, the highest ever recorded in Nigeria.
• Move aimed at combating inflation exceeding 29%.
• CBN maintains Cash Reserve Ratio (CRR) and Liquidity Ratio.
• Governor Cardoso cites multiple factors contributing to inflation.
• MPC optimistic about eventual decline in inflation.
• Focus on boosting investor confidence and monitoring economic developments.

This unprecedented interest rate hike signifies the CBN's strong stance against inflation. While it may negatively impact borrowing costs, it represents a crucial step towards stabilizing the Nigerian economy and alleviating the burden of rising prices on citizens.