Analysts welcome surprise Nigerian policy-rate reduction
Analysts have described the Central Bank of Nigeria’s decision to reduce its benchmark rate as positive for markets. The bank cut the rate to 23 per cent from 26.5 per cent, with Governor Olayemi Cardoso calling the move an operational reset.
Analysts have described the Central Bank of Nigeria’s decision to cut its benchmark interest rate as positive for markets, according to Premium Times. The CBN announced the reduction at the end of its rate-setting meeting on Tuesday. The monetary policy rate was lowered to 23 per cent from 26.5 per cent, making the move a significant change in the benchmark cited in the report.
The decision was described as a surprise move. The supplied material does not identify the analysts who welcomed it, provide their forecasts or explain how the reduction affected individual financial markets. CBN Governor Olayemi Cardoso called the decision “an operational reset”.
He said the measure was intended to improve the effectiveness of monetary policy and support the transition to an inflation-targeting framework. The report does not provide further details about the committee’s deliberations, the expected effect on borrowing costs or the bank’s outlook for inflation. It also does not state whether other policy rates or financial conditions were changed at the meeting.
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