{"id":200637,"date":"2025-11-26T05:19:09","date_gmt":"2025-11-26T05:19:09","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/200637\/"},"modified":"2025-11-26T05:19:09","modified_gmt":"2025-11-26T05:19:09","slug":"nigerias-central-bank-holds-key-rate-wants-inflation-to-fall-further","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/200637\/","title":{"rendered":"Nigeria&#8217;s central bank holds key rate, wants inflation to fall further"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Monetary Policy Rate stays at 27%<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Economists had predicted another rate cut<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Analysts say lower deposit rate signals confidence<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Bank wants to see inflation fall to single digits<\/li>\n<\/ul>\n<p>ABUJA, Nov 25 (Reuters) &#8211; Nigeria&#8217;s central bank left its main interest rate unchanged on Tuesday, saying it wanted inflation to fall further, but it lowered a deposit rate in a sign of confidence in the economic outlook.<\/p>\n<p>The decision came as a surprise as economists polled by Reuters had predicted a 1-percentage-point cut to the Monetary Policy Rate (MPR) <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/quote\/NGCBIR=ECI\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(NGCBIR=ECI), opens new tab<\/a>, following up on the first rate reduction since 2020 <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/africa\/nigerias-central-bank-cuts-policy-rate-by-50-basis-points-2025-09-23\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">in September<\/a>.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/africa\/nigerias-central-bank-holds-benchmark-rate-27-2025-11-25\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Fafrica%2Fnigerias-central-bank-holds-benchmark-rate-27-2025-11-25%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>Inflation slowed for the seventh month in a row in October to 16.05% year on year <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/quote\/NGCPIY=ECI\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(NGCPIY=ECI), opens new tab<\/a>.<\/p>\n<p>But central bank Governor Olayemi Cardoso said inflation was still too high, and the MPR was maintained at 27%.<\/p>\n<p>&#8220;Headline inflation remains high at double digits, requiring sustained efforts towards moderating it further,&#8221; Cardoso told a press conference.<\/p>\n<p>&#8220;The decision was underpinned by the need to sustain the progress made so far towards achieving low and stable inflation.&#8221;<\/p>\n<p>Cardoso said the bank was adjusting the corridor on its Standing Facility to +50 to -450 basis points around the MPR, cutting its deposit rate and encouraging banks to lend rather than parking money with the central bank.<\/p>\n<p>Razia Khan, head of Africa research at Standard Chartered, said the changes to the standing facility were the real talking point. &#8220;It is a very significant de facto easing, signalling confidence in both the inflation trajectory and FX stability.&#8221;<\/p>\n<p>Another reason why the central bank held off from cutting its key rate could be that it wants to monitor whether inflation rises before its next policy meeting, analysts said.<\/p>\n<p>&#8220;If they cut rates now, January could reveal that it did not make sense. They moved the next meeting to February, which means that they would be using January inflation,&#8221; said Tajudeen Ibrahim, director of research at investment firm Chapel Hill Denham.<\/p>\n<p>Cardoso previously said the central bank is gunning for inflation to fall to single digits in the next few years.<\/p>\n<p>Inflation hit repeated 28-year highs last year, spurred by President Bola Tinubu&#8217;s moves to devalue the naira currency and remove energy subsidies after taking office in 2023.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Elisha Bala-Gbogbo and Chijioke Ohuocha; additional reporting by Ayen Deng Bior in Dakar; writing by Bate Felix and Alexander Winning; editing by Mark Heinrich<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Monetary Policy Rate stays at 27% Economists had predicted another rate cut Analysts say lower deposit rate signals&hellip;\n","protected":false},"author":2,"featured_media":200638,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[82772,82758,85715,85716,85718,79,110867,84893,84370,110868,84897,84146,88447,83806,83115,83116,179,18,55396,82578,32356,82503,87582,45748,19,84365,84368,17,105113,83122,97938,88935,85212,82508,82534,82533,82967],"class_list":{"0":"post-200637","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-afr","9":"tag-bisv","10":"tag-bnk","11":"tag-bnks","12":"tag-bsvc","13":"tag-business","14":"tag-cbng","15":"tag-cdm","16":"tag-cen","17":"tag-curint","18":"tag-dbt","19":"tag-destortao","20":"tag-destozabsm","21":"tag-destozatpm","22":"tag-eci","23":"tag-eco","24":"tag-economy","25":"tag-eire","26":"tag-emea","27":"tag-emrg","28":"tag-fin","29":"tag-fins","30":"tag-frx","31":"tag-gen","32":"tag-ie","33":"tag-infl","34":"tag-int","35":"tag-ireland","36":"tag-loa","37":"tag-mce","38":"tag-mmt","39":"tag-ng","40":"tag-plcy","41":"tag-pol","42":"tag-topcmb","43":"tag-topnws","44":"tag-wafr"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115614316271395436","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/200637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=200637"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/200637\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/200638"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=200637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=200637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=200637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}