The Central Bank of Nigeria (CBN) may maintain a hawkish monetary stance this year with “elevated interest rate” to shore up the naira and slow new inflationary pressures amid global policy shifts.
“Nigeria’s 2025 monetary policy must maintain tightening to curb inflation, stabilise FX, and restore investor confidence while ensuring liquidity to support growth,” PwC said in its latest report titled ‘Global economic policy changes and implications for Nigeria’.
This new position comes against the backdrop of the recent sweeping tariffs and trade wars triggered by U.S President Donald Trump that shattered the recent stability enjoyed in the currency market, stoking new inflation fears.