• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Nigeria Set to Hike Rates One Last Time to Choke Inflation Before Pause

1 year ago
in Business, Economy, Features, highlights, Home, home-news, latest News
1 min read
0 0
0
65
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Nigeria Set to Hike Rates One Last Time to Choke Inflation Before Pause

The Central Bank of Nigeria is poised to raise interest rates one last time to support the naira and throttle inflation that’s near a three-decade high, before ending its aggressive tightening campaign.

The median estimate of six economists in a Bloomberg survey is for the 12-member monetary policy committee led by Governor Olayemi Cardoso to raise interest rates by 75 basis points to 27%. The decision will be announced on Tuesday at 2 p.m. in the capital, Abuja.

“Developments since the last meeting have definitely been hawkish; inflation has not really slowed at all,” said Goldman Sachs Group Inc. economist Andrew Matheny. “Most importantly, the naira has weakened once again. And that’s obviously inflationary. So all of that points to the CBN staying on the hawkish side.”

Goldman is calling for “something much bigger, much bolder, much more decisive,” if the central bank wants to arrest inflation and change the mindset of foreign investors. “Another 50 or a 100 basis points is certainly not going to move the needle in the eyes of an investor,” Matheny said.

Inflation quickened to 34.2% last month from 34% in May and the naira has slumped almost 6% against the dollar since mid-June, prompting the central bank to sell dollars to local foreign exchange bureaus to ease the domestic scarcity of the US currency.

Analysts also urged the central bank to implement a more concrete strategy to address persistent naira weakness. This “should be articulated and demonstrated with the CBN being a more consistent and active participant in the foreign exchange market,” said James Marshall, senior portfolio manager of Promeritum Investment Management LLP.

RelatedPosts

Africa’s Richest Country to Boost Continental Trade Ties After U.S. 30% Tariff Hit

Nigeria Hits Panic Button as West Africa Logs $2.1bn in Suspicious Crypto Transactions

CID Recovers 43 Stolen Luxury Vehicles Smuggled into Ghana

Still, analysts anticipate a hike on Tuesday will bring to an end the MPC’s tightening cycle that started in May 2022 and has led to rates being lifted by 14.75 percentage points.

“In order to cement inflation’s slowdown and hasten the restoration of positive real rates, the central bank will likely implement one final rate hike in July,” said Yvonne Mhango, Bloomberg Africa economist.

That’s because inflation is expected to slow from July, helped by favorable comparisons with 12 months ago and measures to reduce the cost of food, including the introduction of a 180-day window to import wheat and corn duty free.

They also project the naira will stabilize at its current level, aided by expected dollar inflows, easing inflationary pressures.

Source: bloomberg
Via: norvanreports
Tags: inflationNigeriaNigeria Set to Hike Rates One Last Time to Choke Inflation Before Pause

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Highlights

2025 Mid-Year Economic Review: Fiscal Discipline is a Necessary Pain

Ledecky’s Heroics Highlight Underwhelming US Campaign at World Aquatics Championships

CAF Establishes New Infrastructure Department to Enhance Stadium Development Across Africa

Bibiani Gold Stars Set to Begin GPL Title Defence Against Bechem United as Fixtures for 2025/26 Season Are Released

Gov’t Increases Producer Price of Cocoa to GHS 51,660 per Tonne for 2025/2026 Season

Value of Mobile Money Transactions Hit GHS 323.2bn in June

Trending

Business

Africa’s Richest Country to Boost Continental Trade Ties After U.S. 30% Tariff Hit

August 4, 2025

Africa's Richest Country to Boost Continental Trade Ties After U.S. 30% Tariff Hit South Africa is strategising...

Nigeria Hits Panic Button as West Africa Logs $2.1bn in Suspicious Crypto Transactions

August 4, 2025

CID Recovers 43 Stolen Luxury Vehicles Smuggled into Ghana

August 4, 2025

2025 Mid-Year Economic Review: Fiscal Discipline is a Necessary Pain

August 4, 2025

Ledecky’s Heroics Highlight Underwhelming US Campaign at World Aquatics Championships

August 4, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.