After years of persistently high inflation, you would think taming the beast would be cause for celebration.
Not in Nigeria – or in the central bank, at any rate. Despite inflation falling to a 5-year low of 8.6 per cent year-on-year in March, the news has simply exacerbated the debate over what to do about interest rates. Continue reading »
Nigeria’s economy grew 6.5 per cent in the third quarter, slightly up from 6.4 per cent in the previous period.
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Joining the club can bring a whole new bunch of friends. In the case of Nigeria, which last month was admitted by JP Morgan to its emerging market Government Bond Index with effect from October, it means a lots of new overseas investors – and borrowing costs dropping off a cliff.
But that doesn’t mean everything is rosy. Inflation is still stubbornly high, above the single-digit target, and the central bank is expected to hold interest rates on Tuesday. Continue reading »
Falling inflation wasn’t enough to twist policy makers’ arms in Nigeria on Tuesday. The central bank’s monetary policy committee left its policy rate at 12 per cent for a third consecutive time.
Although Monday’s inflation figure of 11.9 per cent year on year in February surprised the market, it is still above the central bank target of 10 per cent. Continue reading »