Wall St futures steady as Dec rate cut bets increase; PCE data awaited
Investing.com -- The Central Bank of Nigeria (CBN) maintained its policy rate at 27.00% on Tuesday, a decision that surprised market observers who had anticipated further easing following September’s rate cut.
The central bank had initiated an easing cycle at its previous Monetary Policy Committee (MPC) meeting in September, when it reduced rates by 50 basis points.
Despite keeping the main rate unchanged this time, the CBN adjusted its interest rate corridor around the monetary policy rate from +250/-250 basis points to +50/-450 basis points, a move aimed at enhancing monetary policy transmission.
The decision to hold rates steady comes amid what the central bank described as a continuing disinflationary trend in the Nigerian economy. The statement accompanying the rate decision conveyed a generally dovish tone, suggesting the central bank remains open to future rate cuts.
Analysts now expect a stop-start approach to monetary easing as policymakers balance their cautious stance with the ongoing disinflation in the economy. The central bank’s careful approach indicates it is monitoring economic indicators closely before committing to further rate reductions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.