CBN Expected to Maintain Interest Rates as Inflation Declines Ahead of MPC Meeting

As the Central Bank of Nigeria (CBN) commences its 297th Monetary Policy Committee (MPC) meeting, financial analysts expect the apex bank to keep the current interest rates steady.

This follows recent improvements in Nigeria’s macroeconomic indicators, including a drop in inflation for two consecutive months.

The National Bureau of Statistics (NBS) reported a decrease in food inflation to 37.52% year-on-year in August, with headline inflation down to 32.15%.

Analysts at Cordros Capital predict that the CBN will likely maintain its current rates to support the disinflation efforts.

They believe the MPC may opt for a “HOLD” stance, allowing previous rate hikes to take full effect on the economy, especially with inflation risks still present due to rising fuel prices.

This cautious approach is aimed at stabilizing economic conditions while keeping inflation under control.

Professor Anthony Kila, a political economist, advised the CBN to pause further rate hikes.

He emphasized the importance of aligning monetary policies with the real economy, urging the apex bank to review its methods of measuring inflation and economic growth, and to enhance consumer finance policies to better impact people’s lives.

(Daily Trust)