Nigeria MPC Opens 306th Meeting With 26.5% Rate Hold in View as Inflation Eases to 15.9%
Updated
Updated · Daily Trust · Jul 21
Nigeria MPC Opens 306th Meeting With 26.5% Rate Hold in View as Inflation Eases to 15.9%
3 articles · Updated · Daily Trust · Jul 21
Summary
26.5% is the rate most economists, bankers and asset managers expect the Central Bank of Nigeria to keep unchanged as the MPC opens its 306th meeting in Abuja.
15.91% June inflation, a steadier naira and moderating energy costs underpin that view, while analysts say earlier rate hikes are still working through the economy and conditions are already highly restrictive.
45% cash reserve requirements for deposit money banks and tight liquidity controls have already squeezed credit, leading stakeholders to argue another hike would add economic costs without much extra disinflation benefit.
Middle East tensions and Nigeria's approaching election cycle still cloud the outlook, with analysts warning that higher oil prices, fiscal spending and stronger demand could revive inflation even if the committee holds for now.