The image showcases Nigeria’s urban financial hub with tall buildings and vibrant city life.
Nigeria’s central bank held its benchmark interest rate at 26.5% for a second straight meeting, a move that keeps commercial lending rates above 30% for many businesses. The Monetary Policy Committee cited a need to sustain moderating inflation and preserve macroeconomic stability as reasons for its decision. However, the call has split analysts: some argue elevated rates are stifling private investment, manufacturing, and job creation, while others say maintaining discipline supports investor confidence and currency stability. Despite elevated lending costs, private sector credit increased to about $52.8 billion in May from about $52.5 billion the previous month. Headline inflation also edged down to 15.91%, while foreign reserves climbed above $52 billion, strengthening expectations that rate cuts could eventually become feasible.
Nairametrics