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Vol 65 No 16

Published 2nd August 2024


Nigeria

Central bank fights to slow inflation and protect its independence

Within a year bank governor Yemi Cardoso has won a reputation for competence – despite the government’s mounting economic woes and dislike of accountability

As spiralling prices hit a 30-year high and the weakening naira triggers another round of protests and strikes due to start on 1 August, the Central Bank of Nigeria has raised its benchmark interest rate (the monetary policy rate, the rate at which it lends to commercial banks) by 50 basis points to 26.75%. It is the fourth rate rise this year and the 12th since March 2022. The CBN has pushed rates up by 15.25% over the past two-and-a-half years, but inflation was running at just over 34% in June, and food price inflation was higher still.

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