{"id":95520,"date":"2025-09-24T05:07:00","date_gmt":"2025-09-24T05:07:00","guid":{"rendered":"https:\/\/sotnews.agency\/?p=95520"},"modified":"2025-09-24T05:07:00","modified_gmt":"2025-09-24T05:07:00","slug":"nigeria-central-bank-cuts-key-rate-for-first-time-since-2020","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=95520","title":{"rendered":"Nigeria central bank cuts key rate for first time since 2020"},"content":{"rendered":"
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Nigeria\u2019s central bank cut its key lending rate for the first time since 2020 on Tuesday, lowering it by 50 basis points as inflation is falling from very high levels.<\/p>\n

The move takes the Central Bank of Nigeria\u2019s Monetary Policy Rate to 27%.\u00a0<\/p>\n

Economists polled by Reuters had predicted a 75 bps cut, following three \u201chold\u201d decisions so far this year and six hikes in 2024.<\/p>\n

The rate cut was predicated on projections for declining inflation for the rest of the year and the need to support the economy, central bank governor Olayemi Cardoso said.<\/p>\n

The Monetary Policy Committee \u201cwill remain proactive through a data-driven policy response,\u201d he continued, adding that the committee was satisfied with improving macroeconomic indicators.<\/p>\n

Data on Monday showed economic growth\u00a0picked up\u00a0to 4.23% year on year\u00a0in the second quarter, its quickest pace in about four years.<\/p>\n

Headline inflation\u00a0slowed\u00a0to 20.12% year-on-year in August, its fifth consecutive drop, and the naira has strengthened about 3% against the dollar this month after being broadly stable through July and August.<\/p>\n

Cardoso said the central bank wanted to see inflation in single digits.<\/p>\n

Inflation in Africa\u2019s most populous country scaled repeated 28-year peaks last year, spurred by President Bola Tinubu\u2019s moves to devalue the naira and cut subsidies since taking office in 2023.<\/p>\n

But it has been on a downtrend trajectory this year after the statistics office revised its base year and adjusted the weight of items in its price index.<\/p>\n

Capital Economics analyst David Omojomolo said in a research note that he expected an aggressive easing cycle ahead, with a further 700 basis points of cuts to the central bank\u2019s policy rate by the end of next year.<\/p>\n<\/div>\n

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\"NigeriaNigeria’s central bank cut its key lending rate for the first time since 2020 on Tuesday, lowering it by 50 basis points as inflation is falling from very high levels.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1972,9138,1300,10,9],"tags":[],"class_list":["post-95520","post","type-post","status-publish","format-standard","hentry","category-africa","category-central-bank","category-nigeria","category-politics","category-popular"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/95520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=95520"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/95520\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=95520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=95520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=95520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}