CBN holds interest rate for 8th straight time on slowing inflation

The Central Bank of Nigeria (CBN) on Tuesday retained its benchmark interest rate at 11.5 percent on slowing inflation, in line with analysts’ expectations.

Other policy parameters were also held constant. The CBN has kept the MPR at 11.5 percent since September 2020.

Nigeria’s inflation rate slowed for the seventh consecutive month to 15.99 percent in October as prices of food and non-food items declined, the National Bureau of Statistics has said.

Read also: NBS’s October inflation figure: A bitter pill to swallow

Real GDP grew by +4.03 percent in the third quarter largely on the back of a 49.65 percent contribution from the services sector, where financial and Insurance services recovered from a -2.48 percent contraction in Q2, to grow year-on-year by +23.23 percent.

Unlike Nigeria, other African countries like Ghana and South Africa hiked their interest rates on the back of rising inflation.

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