Wednesday, December 25, 2024

Central Bank of Nigeria postpones interest rate meeting again

Investors have been looking to the monetary policy meeting to have a sense of how the central bank will tackle inflation.

The Central Bank of Nigeria has again postponed a meeting of its monetary policy committee. It is the second time since Olayemi Cardoso was nominated as governor in September.

The meeting was scheduled for Monday and Tuesday, according to CBN’s calendar of MPC meetings published on its website. But Isa Abdulmumin, the spokesman for the bank, said by text message on Monday that the “MPC is not holding” a meeting this week, Bloomberg reported. He didn’t give a date for when the next meeting will be held.

Investors have been looking to the monetary policy meeting to have a sense of how the central bank will tackle inflation that has reached the highest level in two decades. They’re also anticipating an update on the bank’s currency reforms.

Nigeria’s inflation rate soared for the 10th straight month to an 18-year high in October, driven by weaker naira, low food production and the removal of fuel subsidies.

Consumer prices increased by 27.3% from the same month last year, up from 26.7% in September, according to data published on Wednesday by the National Bureau of Statistics (NBS).

CBN and interest rate pressure

The rise in inflation puts pressure on the central bank to raise interest rates. The bank’s monetary policy committee met last in July, when it opted for a smaller-than-expected 25 basis point hike.

Cardoso has pledged to focus more on price stability.


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