Lagos, August 30, 2024 — A recent inflation expectations survey conducted by the Statistics Department of the Central Bank of Nigeria (CBN) has revealed that a significant majority of respondents—74.2%—believed that the apex bank should have reduced interest rates in July. This is in stark contrast to the 12.4% who advocated for an increase in rates and the 13.4% who preferred maintaining the status quo.
The survey findings, which were published on the CBN’s website, come in the wake of the Monetary Policy Committee’s decision to raise the benchmark interest rate by 50 basis points to 26.75%—the fourth rate hike in seven months. CBN Governor Olayemi Cardoso stated that this decision was driven by persistent inflationary pressures, despite concerns about the impact of high interest rates on Nigerian businesses and households.
The survey further indicated that both businesses and households perceived July’s inflation rate as high, attributing the rise in inflation to factors such as energy prices, exchange rate fluctuations, and transportation costs.
According to the National Bureau of Statistics, Nigeria’s inflation rate slightly moderated to 33.40% in July, down from 34.19% in June.
The CBN’s survey, conducted between July 14-26, included 1,600 businesses and 1,650 households across all 36 states and the Federal Capital Territory. The Inflation Expectations Survey (IES) aims to gather insights into how businesses and households perceive current and future inflation trends and identify the key factors driving these trends.
