The Central Bank of Nigeria is set to decide on its policy rate today.
The consensus of economists polled by Bloomberg is for the CBN to hike rates 50bp as inflation continues to surge and inflation expectations remain unanchored amid currency weakness, floods in food-producing regions, and rising diesel costs. Headline inflation in Nigeria reached a 17-year high of 20.52 percent y/y in August.
At the July meeting, Governor Godwin Emefiele said that policymakers will lean toward additional hikes if inflation continues to be “aggressive.” With inflation running hot and major central banks hiking rates aggressively, there is a risk that the CBK could deliver an outsized rate hike today.
