The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has voted to unanimously increase benchmark interest rate by 25 basis points to 27.50% from 27.25%

All 12 members of the committee were in attendance and voted unanimously for the raise.

Members also voted to retain the asymmetric corridor around the MPR at + 500 and – 100 basis points.

The meeting held on the backdrop of renewed inflationary pressures as the headline food and core measures rose year-on-year in October 2024

Reading out the decision of the committee, the CBN Governor, Olayemi Cardoso, said the committee was particularly concerned that all three measures also inched up on a month-on-month basis, suggesting the persistence of price pressures with attendant adverse impact on income and welfare of citizens.

Members therefore agreed unanimously to remain focused on addressing price developments.

He said while food prices remain a key contributor to the uptick, members commended the efforts of the federal government for the improved security especially in the north east of the country, which would likely improve food production.

The committee also noted the role of rising energy prices on the general price level due to its impact on factors of production.

Cardoso said the recent increase in the price of premium motor spirit, PMS has also impacted the cost of production and distribution of food items and manufactured costs.

The committee was optimistic that the full deregulation of the downstream sub sector of the petroleum industry would eliminate scarcity and stabilize price levels in the short to medium term.