Nigeria inflation rate cut likely as MPC meets after fifth month of decline

By IDNN Economy Desk

Nigeria’s inflation slowed for a fifth consecutive month in August, dropping to 20.12% from 21.88% in July, according to the NBS. Analysts now expect the CBN’s Monetary Policy Committee to cut interest rates by 50–75 basis points at its meeting.

A Shift in Nigeria’s Monetary Policy

This would mark the first rate cut since Bola Tinubu took office. For nearly two years, the MPC raised rates aggressively to fight inflation, which peaked in 2024. Regional peers like Ghana and Egypt have already turned dovish.

Relief for Markets, Watch for Risks

A rate cut could stimulate borrowing and investment but may carry risks from FX volatility and food supply shocks. Analysts warn the MPC will tread cautiously, balancing growth with inflation control.

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