The Central Bank of Nigeria (CBN) is set to meet for the first time this year to decide on its policy rate.
Although inflation moderated in December, it remains significantly elevated, and we, therefore, expect policymakers to vote in favour of tightening monetary policy further. However, after hiking by five percentage points since May, the CBN is likely to implement smaller rate hikes given the build-up of pressures in the local economy and risks of over-tightening.
