Nigerian Markets Await Potential Rate Cut as MPC Convenes for Final 2025 Session

The Nigerian market is poised for a potential interest rate cut as the MPC gathers for its last 2025 session. Analysts predict a rate reduction due to stable disinflation, currency stability, and improved liquidity.

Expectations range from a 50 to 200 basis point cut, with differing views on the extent of the decrease. Notable figures like Razia Khan and Tilewa Adebajo advocate for varying degrees of rate cuts, citing inflation trends and economic conditions.

However, concerns over inflation remaining above the CBN's target range persist, influencing the cautious approach of experts like Funmi Adebowale. The decision of the MPC is expected to significantly impact market sentiment moving into 2026.