Nigeria’s central bank has lowered its key lending rate by 50 basis points to 27% in a bid to ease inflationary pressures.
This marks the first rate cut since 2020, reflecting a shift in monetary policy as inflation shows signs of easing from previously high levels.
Economists had predicted a slightly deeper cut of 75 basis points, following three consecutive rate freezes and six hikes in 2024.
The decision comes after Nigeria’s headline inflation rate slowed to 20.12% year-on-year in August, its fifth consecutive monthly decline.
By reducing the interest rate, the central bank aims to stimulate economic growth while maintaining control over inflation.
