Most Analysts Anticipate CBN Rate Reduction In July, Survey Shows

Most Analysts Anticipate CBN Rate Reduction In July, Survey Shows

A recent inflation expectations survey by the CBN’s Statistics Department revealed that about 74.2% of respondents believed the central bank should have cut the interest rate in July. This contrasts with 12.4% who thought the rate should be increased, and 13.4% who preferred no change…..CONTINUE READING 

The survey results, published on the CBN’s website, come after the Monetary Policy Committee’s decision to raise the benchmark rate by 50 basis points to 26.75%, marking the fourth increase in seven months. CBN Governor Olayemi Cardoso attributed the hike to ongoing inflationary pressures, despite acknowledging the high interest rates’ impact on Nigerians and businesses.

The survey, conducted from July 14-26 among 1,600 businesses and 1,650 households across Nigeria, indicated that respondents viewed the July inflation rate as high. They identified changes in energy prices, exchange rates, and transportation costs as significant inflation drivers. Nigeria’s inflation rate decreased slightly to 33.40% in July from 34.19% the previous month.