The popular saying "shoot for the moon; even if you miss, you'll be one of the stars."
The monetary policy committee closed the curtains for the year with an additional 100bps increase to its anchor rate (16.5%pa). This is the fourth consecutive rate hike in six meetings. Overall, the MPC has increased rates by 500bps.
Monetary policy tightening is not Nigeria-specific, it is a global phenomenon. The world has moved from the era of near-zero interest rates and quantitative easing to aggressive rate hikes not seen since the financial crisis of 2008. The US Fed has increased rates by a total of 375bps, the BoE 275bps, and the Bank of Ghana, a whooping 1000bps. Clearly, Nigeria’s position is consistent with the global trend.