To Raise or Not to Raise? Nigeria’s Policy Dilemma: Chartby
With the Nigerian economy facing the risk of a recession and inflation at an almost six-year high, policy makers have their work cut out before they announce their decision at 2 p.m. in Abuja on Tuesday. Eighteen out of 20 economists in a Bloomberg survey predicted the Central Bank of Nigeria will raise its benchmark rate -- but those forecasts were made before data on May 20 showed Africa’s biggest economy contracted in the three months through March for the first time since 2004. Policy makers also have to address calls for a currency devaluation and lifting of the capital controls that are starving the economy of dollars.