Nigeria’s central bank has kept its benchmark interest rate steady at 27.50%, according to Governor Olayemi Cardoso.
- Nigeria’s central bank maintains benchmark interest rate at 27.50%.
- Inflation rate reported at 24.48% for January after a rebasing exercise.
- Investors will watch closely if CBN continues tough stance or starts easing up depending on inflation.
Nigeria’s central bank has kept its benchmark interest rate unchanged at 27.50%, Governor Olayemi Cardoso announced on Thursday.
This decision follows a series of six rate hikes last year, totalling 875 basis points, aimed at curbing inflation.
The Central Bank of Nigeria has raised rates by a cumulative 16 percentage points since 2022 to cool decades-high inflation and steady the naira, which has depreciated 70% against the dollar following currency reforms in 2023.
However, the tightening campaign is beginning to yield results, with the currency trading at a narrow range between 1,470 and 1,550 per dollar since early December.
Cardoso has been focused on reducing inflation, which has become a major challenge for Africa’s once-largest economy, now the fourth-largest on the continent.
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Earlier this week, Nigeria’s statistics agency reported a revised annual inflation rate of 24.48% for January after a rebasing exercise.
“The committee noted the recent rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS), which adjusted the weighting of items in the consumption basket to reflect current spending patterns,” said CBN Governor Olayemi Cardoso.
The road ahead is still unclear. With the next MPC meeting set for May 2025, investors will be keeping a close eye on whether the CBN sticks to its tough stance or starts easing up if inflation cools down further.
