First rate cut since COVID: CBN eases to 27% as inflation slows
- Nigeria's Central Bank cut the benchmark interest rate to 27% from 27.50%.
- The decision was made during the 302nd Monetary Policy Committee meeting.
- Headline inflation slowed to 20.12% in August, down from 21.88% in July.
The Central Bank's decision to cut interest rates is a significant move towards stimulating economic growth in Nigeria. However, the potential for excess liquidity to pressure prices remains a concern, indicating that careful monitoring and policy adjustments will be crucial in sustaining these gains.
