Tuesday, October 24, 2017 3:24:39 AM- Nigerian Stock Exchange.



  How long can CBN hold interest rates @ 14%

      by Lukman Otunuga

Sep 27 (Lagos) - Nigeria’s central bank has left the benchmark interest rate unchanged at 14% in September, but for how much longer?

 

It is becoming clear that the nation’s improving macroeconomic conditions and stabilizing interest rates, both present an argument for rates to be cut in an effort to support the current recovery. 



Although some may still  view the Nigerian economy as fragile, especially after its exit from the worst economic slump in 25 years, a rate cut could offer the economy a shot in the arm. Market players will be closely scrutinizing inflation data and core economic metrics ahead of November’s policy meeting, for more clues on when the CBN plans to take action.

 

The Naira has traded in a range against the Dollar on the parallel markets this month, with prices currently hovering around 362. With the Greenback bouncing back to life as expectations mount over higher US interest rates, the Naira like many other emerging market currencies, could find itself pressured.
reporting for easykobo.com on Wednesday, Sep 27 2017 from Lagos, Nigeria


Comment by FXTM Research Analyst, Lukman Otunuga on CBN Interest Rate




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