Would you like to receive notifications on latest updates of the following headlines?

CBN may halt interest rates hike — Report

POSTED ON September 17, 2024 •   BUSINESS      BY Abiodun Saheed Omodara
Interest Rate l Credit: Dailypost

Nigeria's inflation rate fell to its lowest level in six months in August, prompting Nigeria's central bank to halt its unprecedented tightening cycle before the meeting last week, according to Bloomberg. 

The National Bureau of Statistics said in a statement posted on its website on Monday that consumer prices rose 32.2% from 33.4% in July.

This is in line with the estimate of nine economists in a Bloomberg survey.

The slowdown stems from the impact of inflation on prices and the temporary removal of fuel subsidies implemented a year ago.

The measures are part of the reforms introduced by President Bola Tinubu after he assumed office in May 2023 to attract investors, improve liquidity, reduce taxes and  budget pressure.

Data collection was completed before mid-August, so it did not capture the impact of the 45% increase in gasoline prices in early September that drove up transportation costs.

The slowdown raises the possibility that policymakers will end a tightening cycle that has raised interest rates from 11.5% to 26.75% in just  two years.

This will also give the Committee on Monetary Policy, which will announce its decision on September 24, time to assess the impact of the new currency differences, the severe floods in northern Nigeria and rising of oil prices for inflation.

Food inflation slowed to 37.5% in August from 39.5% in the previous month. Core price growth, excluding agricultural products and energy, rose to 27.6% from 27.5%.

Higher corn yields and a six-month supply freeze contributed to the slowdown in price increases.

CBN may halt interest rates hike — Report

 

Nigeria's inflation rate fell to its lowest level in six months in August, prompting Nigeria's central bank to halt its unprecedented tightening cycle before the meeting last week, according to Bloomberg.

The National Bureau of Statistics said in a statement posted on its website on Monday that consumer prices rose 32.2% from 33.4% in July.

This is in line with the estimate of nine economists in a Bloomberg survey.

The slowdown stems from the impact of inflation on prices and the temporary removal of fuel subsidies implemented a year ago.

The measures are part of the reforms introduced by President Bola Tinubu after he assumed office in May 2023 to attract investors, improve liquidity, reduce taxes and  budget pressure.

Data collection was completed before mid-August, so it did not capture the impact of the 45% increase in gasoline prices in early September that drove up transportation costs.

The slowdown raises the possibility that policymakers will end a tightening cycle that has raised interest rates from 11.5% to 26.75% in just  two years.

This will also give the Committee on Monetary Policy, which will announce its decision on September 24, time to assess the impact of the new currency differences, the severe floods in northern Nigeria and rising of oil prices for inflation.

Food inflation slowed to 37.5% in August from 39.5% in the previous month. Core price growth, excluding agricultural products and energy, rose to 27.6% from 27.5%.

Higher corn yields and a six-month supply freeze contributed to the slowdown in price increases.

READ ALSO
Lagos, Ogun Set for 25-Day Power Outage: Maintenance Work Begins July 28
BY Abiodun Saheed Omodara July 28, 2025 0

Lagos State and some areas of Ogun will undergo a power outage lasting 25 days, beginning on July 28...

READ ALSO
FG Mandates GPS Coordinates for Capital Projects Over N150 Million in 2025
BY Abiodun Saheed Omodara July 25, 2025 0

The Federal Government has required that all Ministries, Departments, and Agencies provide the Globa...

READ ALSO
FG Urges Project Accountants to Prioritize Integrity in Fund Management
BY Abiodun Saheed Omodara July 25, 2025 0

The Federal Government has cautioned project accountants and financial officers to prioritize care a...

READ ALSO
Electricity Tariffs: Power Firms Push Back Against State Negotiations
BY Abiodun Saheed Omodara July 24, 2025 0

On Wednesday, energy commissioners from all 36 states announced their willingness to engage with pow...

READ ALSO
CBN Maintain Interest Rate at 27.5%
BY Abiodun Saheed Omodara July 22, 2025 0

The Central Bank of Nigeria (CBN) has decided to keep the country's Monetary Policy Rate (MPR) at 27...

READ ALSO
Economic Reforms Slash Nigeria's Debt Servicing from 97% to 50%- Oloyede
BY Abiodun Saheed Omodara July 22, 2025 0

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, revealed th...

READ ALSO
CBN, Private Sector Raise Concerns Over Nigeria Customs' B’Odogwu Digital Clearance System
BY Abiodun Saheed Omodara July 21, 2025 0

The Central Bank of Nigeria (CBN) and the organized private sector have expressed concerns regarding...

READ ALSO
Nigeria-Egypt Trade Surges by 68%, Foreign Minister Highlights Trade Imbalance
BY Abiodun Saheed Omodara July 21, 2025 0

Trade between Nigeria and Egypt has seen a significant increase of 68.45 percent over the past year....

OUR CHANNELS:

Nigerian Army, DSS Operatives Eliminate 45 Terrorists in Niger State Operation
BY Abiodun Saheed Omodara July 29, 2025 0

Nigerian Army troops, along with Department of State Services (DSS) operatives and hybrid forces, el...


SDP Expels Nasir El-Rufai for Misrepresentation and Manipulation
BY Abiodun Saheed Omodara July 29, 2025 0

The National Working Committee of the Social Democratic Party (SDP) has expelled former Governor of...


Tinubu Hosts Super Falcons Following WAFCON Triumph
BY Abiodun Saheed Omodara July 29, 2025 0

President Bola Tinubu is scheduled to host the Super Falcons at the Presidential Villa in Abuja afte...


Lagos, Ogun Set for 25-Day Power Outage: Maintenance Work Begins July 28
BY Abiodun Saheed Omodara July 29, 2025 0

Lagos State and some areas of Ogun will undergo a power outage lasting 25 days, beginning on July 28...


NMA Delays Nationwide Strike, Urges FG to Resolve Key Healthcare Issues in 21 Days
BY Abiodun Saheed Omodara July 29, 2025 0

The Nigerian Medical Association (NMA) has decided to temporarily halt its planned strike, allowing...


Nigeria at Risk: Scientist Warns of Imminent Earthquakes and Climate Disasters
BY Abiodun Saheed Omodara July 28, 2025 0

A scientist located in Uyo, Akwa Ibom State, Dr. Anietie Ikott, has cautioned that Nigeria might soo...


FG Targets Two Million Jobs with Social Housing Programme
BY Abiodun Saheed Omodara July 29, 2025 0

The Federal Government has set an ambitious target of creating over two million jobs throughout Nige...


Nigeria, South Africa World Cup Qualifier Set for September 9 in Bloemfontein
BY Abiodun Saheed Omodara July 29, 2025 0

FIFA has announced that South Africa's 2026 World Cup qualifying match against Nigeria will take pla...


EU Reaffirms Support for Peace-building in Nigeria
BY Abiodun Saheed Omodara July 28, 2025 0

The head of the European Union delegation to Nigeria and ECOWAS,Reuben Alba,reaffirmed the EU's dedi...


Ogun Imams Raise Alarm over Proposed Daytime Curfew for Traditional Rites, Cite Constitutional Breach
BY Abiodun Saheed Omodara July 29, 2025 0

The League of Imams and Alfas in Ogun State raised concerns on Sunday regarding traditionalists' int...


More Articles

Load more...

Menu