Minutes from the February meeting showed policymakers making the hawkish case for aggressive interest rate hikes to tame sky-high inflation, which came in at an annual 31.7% in February.
The CBN announced that its main monetary policy rate would rise to 24.75% from 22.75%, in its second consecutive hike after February's 400 basis point increase. "That said, the fact that officials delivered a larger-than-expected hike suggests that the fight against inflation, which stood at 31.7% y/y in February and is set to continue rising over the coming months, is taking precedence."Minutes published last week from the central bank's February meeting had showed policymakers arguing the hawkish case for aggressive interest rate hikes to tame sky-high inflation, which came in at an annual 31.