Nigeria Holds Interest Rate at 27.50%, Botswana at 1.90%

Nigeria's central bank has decided to keep its benchmark interest rate at 27.50%, following recent macroeconomic developments and the rebasing of the consumer price index (CPI) that adjusted reported inflation from 34.48% to 24.48%. Central Bank Governor Olayemi Cardoso indicated that the decision was made to evaluate the effects of previous rate hikes and to avoid stifling business activity amid ongoing inflationary pressure. Analysts had anticipated this pause, suggesting that another tightening could worsen economic conditions. The stability of the naira since December and a gradual slowdown in fuel prices also influenced the decision. This marks a strategic moment for the bank as it navigates the balance between controlling inflation and supporting economic growth. The next Monetary Policy Committee meeting will likely assess the impact of these changes before any major decisions are made.