CBN’s interest rate cut

The Central Bank of Nigeria (CBN), last week, cut the benchmark interest rate to 23 per cent from its previous 26.5 per cent. This represents a massive 350 percent basis point reduction. The decision by the Monetary Policy Committee (MPC) came against the backdrop of sustained inflation moderation in recent months and improved foreign exchange conditions.   According to the CBN Governor, Olayemi Cardoso, the decision to slash interest rate to 23 per cent was taken after the MPC had examined trends in the global and domestic economic environment as well as an evaluation of emerging risks in global markets and their potential for monetary policy decisions.
Good enough, headline inflati...