World Bank don talk say Nigeria, Angola, and Sierra Leone go dey maintain high interest rate for long time because of double-digit inflation and weak domestic currencies. Dis information dey inside their latest Africa’s Pulse report, where dem focus on how inflation dey vary across different countries in Africa.
Recently, National Bureau of Statistics announce say Nigeria inflation for September increase to 32.70%, after two months of decline. High fuel prices na one of the reasons why food prices no reduce, even with harvest season.
Central Bank of Nigeria increase benchmark interest rate by 50 basis points to 27.25% to control inflation. According to World Bank, countries like Nigeria, Angola, and Sierra Leone go keep their monetary policy rates high for longer, and maybe even increase am, because their inflation rates still no peak.
Factors like currency weakness, slow fiscal adjustment, and cost pressures dey drive dis decision. For example, Ethiopia, Ghana, and Nigeria na among the worst performing countries in Africa dis year, with their currencies dey weaken and high demand for foreign exchange.
Naira, Nigeria’s currency, na one of the worst-performing currencies in Sub-Saharan Africa. As of August 2024, naira don depreciate by about 43% year-to-date, due to high demand for US dollars in parallel market, limited dollar inflows, and slow foreign exchange disbursements by Central Bank of Nigeria.
