Demand for credit by businesses and consumers in Africa’s most populous nation is expected to rise as a sharp decline in inflation rate increases bets on a much-awaited monetary easing cycle.
Analysts and industry data suggest that a potential shift in the monetary policy stance could trigger a surge in loan demand, supporting economic activity in key sectors after multiple interest rate hikes slowed business expansion.
According to analysts at FBNQuest Merchant Bank, the steep fall in consumer prices to 23.18 percent in February from an average of 32 percent last year means policymakers may begin a gradual easing of monetary policy conditions this year when it meets on May 19th and 20th 2025.