Standard Chartered has lowered expectations for interest rate cuts in Nigeria this year, warning that persistent inflationary pressures and elevated inflation expectations will likely force the Central Bank of Nigeria (CBN) to maintain a cautious approach to monetary easing despite signs that price growth could moderate over the medium term.
The global investment bank revised its average inflation forecast for 2026 upward to 15.5 percent from an earlier projection of 12 percent, while raising its 2027 forecast to 14.7 percent from 13.8 percent. The revised outlook has prompted the lender to reduce its expectation for monetary easing this year to 150 basis points, which would leave the Monetary Policy Rate (MPR) at 25 percent by year-end.
“We now see inflation averaging 15.5 percent in 2026 compared with 12 percent previously,” Razia Khan, Standard Chartered’s chief economist for Africa and the Middle East, said in a note. “We now see scope
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