Central Bank Maintains High Interest Rate as Inflation Moderately Eases.
Nigeria’s Central Bank has kept its benchmark interest rate unchanged at 27.50 %, marking the third consecutive policy hold this year. Governor Olayemi Cardoso reaffirmed that tight monetary conditions will continue until inflation moves toward the central bank’s target of single-digit rates.
While consumer inflation dropped from 22.97 % in May to 22.22 % in June, Cardoso emphasized persistent underlying inflationary risks, particularly from global geopolitical tensions and trade disruptions . The central bank linked recent disinflation to stabilizing energy prices and relative calm in foreign exchange markets.
Analysts, however, warn that prolonged high interest rates may dampen economic growth and widen credit constraints—especially if lending rates remain prohibitive for businesses and households. The decision arrives amid broader calls for fiscal and monetary policy coordination to support economic recovery.
Despite simmering economic pressures, Cardoso argued the rate hold is appropriate to consolidate disinflation progress and preserve macro‑financial stability until inflation recedes more firmly toward manageable levels.
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