The Monetary Policy Committee (MPC) is set to convene on July 22-23, 2024, amid soaring inflation and economic challenges in Nigeria.
Led by Olayemi Cardoso, the committee has already increased interest rates three times this year, raising them by 750 basis points to 26.25 percent.
Nigeria’s annual inflation rate climbed to 34.19 percent in June, driven by rising food prices. Despite these pressures, the Central Bank of Nigeria (CBN) projects that inflation will moderate to around 21.40 percent by year-end.
Market analysts expect a further rate hike as the committee seeks to rein in inflation. Nabila Mohammed from Chapel Hill Denham anticipates a 50–75 basis point increase.
Similarly, Coronation Research forecasts a potential rise of 50 to 100 basis points, given the recent uptick in inflation.
The food inflation rate reached 40.87 percent in June, exacerbated by security issues in key agricultural regions.
Essential commodities such as millet, garri, and yams have seen significant price hikes, impacting household budgets and savings.
As the MPC meets, the National Bureau of Statistics is set to release data on selected food prices for June, providing further insights into the inflationary trends affecting Nigerians.
The upcoming MPC meeting will be crucial in determining the trajectory of Nigeria’s monetary policy as the government grapples with economic instability.
The focus remains on balancing inflation control with economic growth to ensure stability in Africa’s largest economy.
