The Monetary Policy Committee made an audacious move by increasing the Monetary Policy Rate by 200 basis points to 14% to combat high inflation, contrary to market expectations that favored stimulating growth over inflation. Inflation had spiked to 16.5%, while the interest rate remained at 12%, fuelled by supply shocks and forex scarcity. The MPC highlighted its quest to achieve a positive rate of return to attract foreign investors and deepen the forex market in order to strengthen the Naira and temper rising input costs. However, tightening monetary policy during a recession risks plunging the economy further into recession through the paradox of thrift.