United Capital Research has stated that the Central Bank of Nigeria may delay a reduction in its Monetary Policy Rate as rising prices of crude oil and Premium Motor Spirit create fresh uncertainty over inflation. The firm noted that inflation has slowed over the past three months but its short-term outlook remains uncertain. It attributed the recent moderation to the naira's appreciation against the US dollar, seasonal declines in food prices from harvests, and a modest rise in crude oil. United Capital cautioned that a sustained slowdown through year-end would justify a rate cut, but the sharp increase in crude oil and PMS prices clouds the outlook.
Related Articles
Don't miss out on breaking stories and in-depth articles.