Central Bank of
Tomorrow's monetary policy committee (MPC) meeting will be the first chaired by new central bank Governor
The former managing director at local
That is much higher than 5.75 percent in
Investors perceived his comments to mark a reversal of the hawkish policies implemented by his predecessor Lamido Sanusi that were credited with curbing inflation and supporting the currency, and sold bonds and the naira.
Emefiele has since said he would wait until after presidential elections next year before making any rate cut, and all 20 analysts polled by Reuters in the past week expected the MPC to keep the benchmark rate steady at 12 percent.
"Emefiele has laid out plans to cut rates in the medium term (but) we do not see any chance of this happening at July's MPC, much less as inflation continues to creep up ahead of elections," said
"Higher risk premiums and fiscal profligacy related to the election will keep pressure on the currency and price growth and Emefiele and his team will not want to exacerbate that by loosening policy too aggressively," said
Prices have started to rise and the naira has lost almost 3 percent this year following Sanusi's departure.
Yields on the government's most liquid three-year bond have fallen consistently to 11 percent, results from a bond auction showed on Wednesday, compared with 14 percent at the start of the year due to excess liquidity.
"With the recent compression in fixed-income yields, as short-tenor maturities head south below the 10 percent levels, the risks of negative real rates on Nigerian assets will again resurface," said
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