CBN rate cut premature amid rising oil, PMS prices — United Capital

By Babajide Komolafe
The Central Bank of Nigeria (CBN) may delay a reduction in its Monetary Policy Rate (MPR), as rising prices of crude oil and Premium Motor Spirit (PMS) create fresh uncertainty over inflation, according to United Capital Research.
MPR is the benchmark interest rate that determines cost of money in the financial system.
The research firm stated: “Although inflation has slowed over the past three months, its short-term outlook remains uncertain.”
It attributed the recent moderation in interest rate to several factors, stating that “the Naira’s appreciation against the US Dollar, seasonal declines in food prices from harvests, and a modest rise in crude oil suppo...