Monetary Policy
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The Central Bank of Nigeria (CBN) delivered its first policy easing of 2026 on February 24, announcing a 50 basis point cut in the Monetary Policy Rate (MPR) to 26.5% from 27%. This marks a cautious but meaningful pivot after more than a year of aggressive tightening.
Governor Olayemi Cardoso is scheduled to announce the Monetary Policy Committee’s decision later today (Tuesday) in Abuja, with investors closely watching for signals that policymakers are shifting focus from inflation control toward supporting growth.
The latest adjustment represents the largest single hike since August 2023 and brings cumulative tightening to 75 basis points since the bank adopted a more hawkish stance in September 2025.
The widely expected move mirrors recent developments in South Africa, where monetary policy decisions continue to shape Namibia’s outlook.
Nigeria’s fintech ecosystem is one of Africa’s most vibrant, with its nucleus positioned in Lagos. According to the 2024 annual data released by the Nigeria Inter-Bank Settlement System (NIBSS)…
The decision marks the 10th consecutive reduction since the easing cycle began in 2024 and brings the Central Bank Rate (CBR) to its lowest level since January 2023.
While inflation remains close to target and expectations well anchored, policymakers fear a potential hike in food and energy costs could reignite price pressures.
The decision, reached at the conclusion of its 128th Monetary Policy Committee meeting on Wednesday, marks the fourth consecutive reduction, following faster-than-expected slowdown in inflationary pressures.
From South Africa to Ghana, Africa’s top ten economies introduced debt securities to finance the economy, balance fiscal deficit, and settle maturing debts amid leading macro economy indicators.
Zambia’s external debt rose to $16bn in Q3 2025, driven by growing reliance on multilateral loans as market access stayed limited after its 2020 default.
The decision marks the bank’s first monetary move of the year, and the second consecutive rate hold, following a cut in July 2025.
Egypt and Afreximbank are studying a pan-African Gold Bank to anchor gold refining, vaulting and trading on the continent and reduce reliance on offshore hubs.
After two years of tightening, African central banks split in 2025—some cutting aggressively as inflation eased, others holding firm to protect currency stability and anchor hard-won disinflation gains.
Egypt’s inflation cooled more than expected in November, easing pressure on the central bank and strengthening the case for resuming rate cuts at its 25 December meeting.
Kenya cuts its benchmark rate to 9% in a ninth straight easing move, bringing borrowing costs to their lowest since early 2023 as credit conditions and FX reserves strengthen.
The BoG’s latest decision aligns strongly with market expectations and reflects the bank’s confidence that price growth will remain contained in the near term.
Nigeria’s pause echoes the Bank of Uganda’s decision earlier this month to keep its key lending rate unchanged at 9.75% for the fifth consecutive policy meeting, despite inflation falling to a seven-month low in October.
Africa’s most industrialised economy is among several across the continent easing monetary policy this year. Zambia cut its key lending rate for the first time in more than five years, while Nigeria, Ghana, Egypt, and Kenya have also lowered rates.
The Bank of Zambia has reduced its key lending rate for the first time in over five years, citing slowing inflation in Africa’s second-largest copper and cobalt producer.
The decision comes three days after S&P Global Ratings upgraded the country’s sovereign rating outlook to “positive” from “stable,” citing stronger growth prospects and rising per capita income.