Nigeria’s Mixed Messages on Interest Rates Are Causing a Problem
- Central bank and government pointing in opposite directions
- Policy makers haven’t held a rate-setting meeting since July
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Nigeria is sending mixed signals on interest rates even as investors wait to hear from the central bank, which has not held a monetary policy meeting since July.
The central bank is offering short-term paper in auctions of its so-called OMOs — which refers to open market operations and are supposed to be for managing market liquidity — at far higher yields than government debt with similar tenor.