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Nigeria's Unconventional Tools Make Policy Hard to Predict

  • Seven of 19 analysts in survey predict interest-rate cut
  • Lower rates will benefit government as it boosts borrowing
Updated on

Nigeria’s central bank is confounding analysts with unconventional economic policies that are becoming difficult to predict.

While African central banks from Ghana to South Africa tighten monetary policy to protect their economies from plunging currencies, speculation is growing that Central Bank of Nigeria Governor Godwin Emefiele will reduce the benchmark rate on Tuesday for the first time in six years. Seven of the 19 economists surveyed by Bloomberg predict the rate will be cut by 50 basis points to 100 basis points, while the rest forecast it will stay at 13 percent.