Economists Expect Highest Cut in Years As MPC Decides Today

Nigeria’s central bank is set to resume easing with its largest interest-rate cut since 2020 on Tuesday, as a stronger naira, moderating inflation and rising foreign-exchange reserves give policymakers room to shore up economic growth.

All six economists surveyed by Bloomberg expect Governor Olayemi Cardoso to lower the benchmark rate when he announces the monetary policy committee’s decision after 2 p.m. in Abuja.
Economists also surveyed by Leadership also say they expect the MPC to cut rates at the end of its meeting this afternoon. The only disagreement is over the size of the move, with two economists forecasting a 50 basis-point cut and the rest expecting a 100 basis-point reduction, after policymakers unexpectedly held the benchmark rate at 27 per cent in November.

A cut of that magnitude would be the largest since September 2020, at the height of the coronavirus pandemic.

The move would bring Nigeria in line with much of Africa, where policymakers from Zambia to the Democratic Republic of Congo are cutting rates as stronger currencies and lower oil prices help tame inflation.