Central Banks
Nigeria’s Token Rate Hike Has Analysts Seeing End to Tightening
- Absa, Capital Economics think Nigeria tightening cycle is over
- RMB, Oxford Economics continue to expect more rate hikes
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The Central Bank of Nigeria’s cautious interest rate hike on Tuesday and optimistic messaging on inflation has some economists predicting its unprecedented two-year tightening cycle is over.
Governor Olayemi Cardoso and his monetary policy committee opted for a quarter-point hike at their last meeting of the year. The increase was the smallest this year and only the second time it’s raised rates by that small a margin, in a tightening cycle in which the benchmark has more than doubled to 27.5% over the course of 14 meetings.