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Leap in capital importation, FDI, disinflation boost case for rate cut

Naija News • Feb 23
Leap in capital importation, FDI, disinflation boost case for rate cut
Spread the word Huge jump in capital importation, Foreign Direct Investment (FDI) and continuing disinflation, amongst others may have given the monetary authorities reason to cut rates when the Monetary Policy Committee (MPC) begins their meeting today. Analysts at Afrinvest however warned that sizeable maturities in the first quarter (estimated at approximately N11.0trn) and uncertainty surrounding the domestic financing mix of the 2026 fiscal deficit (projected at N23.9 trillion to N25.0trn), particularly given the delay in the passage of the 2026 budget by the National Assembly may make the monetary authorities reluctant in cutting rates. They are however optimistic that the swell in capital inflow and slowing inflation would boost the chances of cutting rates. According to the NBS...
Source: Original Article. AI-enhanced version.