Monetary Policy
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The Bank of Ghana said the move reflected continued disinflation and confidence that price growth would return to target of 6-8% before year-end.
Nigeria’s easing headline inflation reflects a broader trend across key African economies in August 2025, with Kenya standing as the outlier.
The move, if implemented, would mark a break from the apex bank’s long tightening cycle and the first cut since September 2020.
This marks the third rate reduction in 2025, reflecting cooling inflation alongside faster growth. Preliminary data showed Egypt’s economy expanded 5.4% in the second quarter, up from 4.8% in the first.
There are growing expectations that the US Federal Reserve could cut interest rates in September 2025—a move that may pave the way for cheaper external borrowing for Nigeria before year-end.
Kenya’s statistics agency attributed the uptick in inflationary pressures during the period to rising food, transport and utility costs, which together account for 57% of the consumer basket.
CBN orders all POS machines in Nigeria to be geo-tagged within 60 days, ending roaming agents while adopting ISO 20022 to curb fraud and boost payment transparency.
The Central Bank of Kenya (CBK) has introduced a new framework that will overhaul how commercial banks price loans, in a bid to strengthen monetary policy and end opaque lending practices.
The decision mirrors similar moves by Egypt and Nigeria, which also held borrowing costs steady at their most recent policy meetings amid domestic price pressures and global market uncertainties.
On Tuesday, Kenya’s central bank cut its benchmark lending rate to 9.50%, the lowest since May 2023, to boost growth as inflation rises to 4.1% and business activity contracts further.
The policy change, agreed with bankers on July 20, replaces the CBK’s earlier plans to anchor lending rates to its own Central Bank Rate, currently at 9.75%.
The bank’s decision comes as inflation declined for the sixth consecutive month in June, falling to 13.7%, supported by improved food supply, a stronger currency, and tighter fiscal control.
Track Nigeria’s 2025 lending rate trends, past decade shifts, current policy stance, and expert forecasts for interest rate moves after the July MPC meeting.
Nigeria’s decision comes despite a recent easing in headline inflation. According to official data, consumer price growth slowed to 22.2% in June — the third straight monthly decline and the lowest level recorded this year.
The scale of the intervention, which exceeds the entire 2023 total of $1 billion and represents nearly half of last year’s sales, reflects a more aggressive approach to exchange rate management.
Another key factor behind the CBE’s decision to hold rates is the government’s recent VAT reform package, announced on June 29. The amendments seek to broaden the tax base without raising the general 14% VAT rate.
The research firm projects a 150 basis point cut in the Monetary Policy Rate (MPR) to 26.0% by year-end. If implemented, the cut would mark the first rate reduction in nearly five years.
With its latest move, the central bank aims to lower Namibia’s interest rate margin from 3.7% to align with other Common Monetary Area (CMA) countries such as South Africa and Lesotho, where margins stand at 3.5%.
The directive is part of the government’s broader financial sector reform campaign aimed at deepening financial inclusion, expanding the tax base through improved payment traceability, and enabling long-term economic growth.
In a sweeping overhaul of Nigeria’s credit system, the Federal Government has announced that all citizens’ credit scores will soon be linked to their National Identification Numbers (NIN).