The Central Bank of Nigeria (CBN) has signalled that there might be no rush for an easing cycle even though inflation slowed in June, marking the first slowdown since the Middle East tensions began in February.
Olayemi Cardoso, the CBN governor said on Thursday, that authorities had projected that a rate cut was imminent as inflation began gradual cooling but the longer-than-necessary US-Iran war dimmed that outlook.
“There were 11 months of continuous disinflation,” Cardoso said at the BusinessDay’s CEO Forum, adding that the trend had strengthened expectations that “over a period of time, we would expect interest rates to begin to moderate.”
Investors have been searching for signs that the Abuja-based bank is nearing an easing cycle after inflation cooled for 11 straight months to February 2026 before beginning to trend upward afterwards.
But Cardoso’s remarks meant policymakers’ are cautious of external shocks and its effects on domestic price risks, suggesting rates may remain higher for longer.
