Businesses Expect CBN to Hold Interest Rate as MPC Meets Amid US-Iran Conflict

Business leaders and economists project that the Central Bank of Nigeria’s Monetary Policy Committee will retain the Monetary Policy Rate at 26.5% when it meets on Monday and Tuesday, citing heightened geopolitical tensions and their potential impact on inflation.​

Muda Yusuf of the Centre for the Promotion of Private Enterprise said the US-Iran conflict and rising crude oil prices make it too early for monetary easing. LCCI President Leye Kupoluyi said businesses would benefit from lower rates but urged caution.

Prof Akpan Ekpo predicted a hold due to uncertainty from the war, which could worsen inflationary pressures. A recent CBN survey showed 61.1% of Nigerians want interest rates reduced.

Key Points:

Experts predict the MPC will hold the interest rate at 26.5%.
The US-Iran conflict and rising crude oil prices are key concerns.
Businesses want lower rates to ease borrowing costs and support investment.
61.1% of Nigerians surveyed want interest rates reduced.
The MPC meeting is scheduled for Monday and Tuesday.

The MPC’s official decision and whether the committee signals any future direction on interest rates.