Will Nigeria opt for another rate hike?

Nigeria's Monetary Policy Committee (MPC) has commenced its second meeting of the year amid speculations and mixed views on the potential outcome. The February 400 basis points hike raised expectations for a continuation of a tight monetary policy stance given the persistent inflation risks facing the nation. Tajudeen Ibrahim, the Director for Research and Strategy at Chapel Hill Denham, joined CNBC Africa to discuss the market's readiness for another possible rate hike. The meeting's outcome is crucial and eagerly anticipated by market participants and analysts as they await the MPC's decision on Nigeria's monetary policy direction. With inflation climbing to 31.7% and a current policy rate of 22.75%, the real interest rate remains negative, signaling the need for further inflation control measures. This article delves into the key points discussed during the interview, assessing the possibilities and implications of an additional rate hike by the MPC under the new Central Bank of Nigeria Governor. The anticipation, strategic considerations, and potential impacts of another rate hike are essential to understanding Nigeria's economic landscape in the face of rising inflation and economic challenges.