Nigeria central bank cuts key rate by 50 basis points

Nigeria’s central bank cut its monetary policy rate by 50 basis points to 26.50%), its governor Olayemi Cardoso said on Tuesday. “The committee’s decision was premised on a balanced evaluation of risks to the outlook, which suggest that the ongoing disinflation trajectory would continue,” Cardoso told a press conference. He said the lagged transmission of previous monetary tightening, sustained exchange rate stability and enhanced food supply were helping bring down inflation.

Inflation slowed to 15.10% year on year in January, down from 15.15% in December. At the central bank’s last rate-setting meeting in November it maintained its policy rate.