Nigeria central bank may keep key rate at 6 percent

Nigeria central bank may keep key rate at 6 percent

Nigeria’s Central Bank is likely to keep its benchmark interest rate unchanged at 6 percent on Tuesday, as the need to stimulate growth outweighs inflation risks in sub-Saharan Africa’s No. 2 economy.

However, the decision is tougher to call than previous meetings because of a decision in August to revise monthly inflation figures upwards to reflect changes in standard of living assumptions, analysts said.

“We think it is going to be a close call this time around between a pause and rate hike,” Citibank said in a research note.

“We look for an unchanged policy rate based on the bank’s current quantitative easing programme.”

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