The Central Bank of Nigeria slashed its monetary policy rate by 100 bps to 12.5% during its May 2020 meeting, surprising markets that expected no change. It was the first rate cut since March of 2019. The decision aimed at reviving the economy battered by the coronavirus pandemic and collapsing oil prices despite persistent inflationary pressures. Policymakers explained that a lower rate would stimulate credit expansion to critically important sectors and thus support employment. Governor Emefiele added that the economy would contract in the second and third quarter of the year but recover in the fourth quarter helped by fiscal and monetary measures. Meanwhile, inflation continued to climb to a two-year high of 12.34 percent in April, persistently above the target range of 6-9%.
Interest Rate in Nigeria averaged 11.19 percent from 2007 until 2020, reaching an all time high of 14 percent in July of 2016 and a record low of 6 percent in July of 2009. This page provides - Nigeria Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Nigeria Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on May of 2020. source: Central Bank of Nigeria
Interest Rate in Nigeria is expected to be 12.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Nigeria to stand at 12.00 in 12 months time. In the long-term, the Nigeria Interest Rate is projected to trend around 11.50 percent in 2021, according to our econometric models.