April 12 (Lagos) - With Inflation dropping to 13.34 in February, this is the 14th consecutive decline. Now the inflation is below the key benchmark lending rate (MPR) of 14% in Nigeria.
Is it time to cut interest rates or not right now especially because the decline is only due to high base effect.
Inflation in Nigeria decelerated to 13.34% compared to last year, dragging consumer price growth below the 14% benchmark interest rates for the first time in two years. With inflation steadily cooling and economic conditions constantly improving, the central bank of Nigeria is on route to cut interest rates.
While an interest rate cut at the next policy meeting in May could be premature, the central bank may surprise markets by taking action in the third quarter of 2018, according to Lukman Otunuga, analyst at FXTM research,