The Central Bank of Nigeria (CBN) on Tuesday retained its benchmark interest rate at 11.5 percent amid improvement in inflation.
This comes not as a surprise as analysts in the financial services sector had expected a hold following weak growth amid declining inflation.
The CBN has kept the MPR at 11.5 percent since September 2020.
Nigeria’s inflation dropped to 17.75 percent in June 2021 from 17.93 percent in May 2021 according to data from the National Bureau of Statistics (NBS).
In the fourth quarter of 2020, Nigerian economy sluggishly recovered from recession it slipped into in the second quarter (Q2) 2020 – after output contracted for the second consecutive quarters.
Real GDP grew by 0.51 percent in the first quarter of 2021 from 0.11 per cent in Q4 2020, according to data from the NBS.
More details soon….