The Central Bank of Nigeria (CBN) 300th meeting of its Monetary Policy Committee (MPC) will on Tuesday likely maintain its key rate at 27.5per cent for a second successive meeting to temper price pressures.
Inflation at 23.7per cent remains elevated and strains on the naira have only recently abated after an initial selloff in April caused by a slump in the price of oil, its main export.
There may be “some room for the CBN to cut rates” in the second half of the year as disinflation is expected, said JPMorgan Chase & Co.’s Gbolahan Taiwo in a client note.
It will be the Nigeria Central Bank’s first rate-setting meeting since the US imposed a 10% universal tariff and slapped China — Africa’s largest trading partner, with a 145% levy before reducing it to 30% for 90 days.
The International Monetary Fund (IMF) in April downgraded its 2025 economic growth forecasts for Nigeria to 3 percent, citing “lower external demand, subdued commodity prices, and tighter financial conditions.”
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