Interest rates serve as a critical economic driver that determines the pace and durability of economic growth. They are the primary mechanism used by Central Banks to navigate the tension between curbing inflation and encouraging economic activity. Under the Renewed Hope Agenda, the CBN treats interest rates through two distinct lenses: a high-rate monetary policy to combat inflation and targeted low-interest interventions for social and economic development (CBN, 2026).

Using NISER study data, this policy brief outlines the economic consequences of interest rate changes in Nigeria, focusing on their effects on investment, inflation, exchange rate, and economic growth.