Global Macroeconomic Review
United States:The US Federal Reserve maintained a cautious monetary stance throughout the period, holding its benchmark interest rate steady at 4.25%-4.50% as policymakers navigated complex economic crosscurrents. This measured approach reflected the central bank’s assessment of mixed economic signals, including moderating inflation trends alongside persistent concerns about global trade tensions…
Domestic Macroeconomic Review
Base Effect, Lower Food Costs Pull Nigeria’s Inflation Down to 23.71%; MPC maintained benchmark rate
Nigeria’s Central Bank maintained a cautious monetary stance throughout the period, with the Monetary Policy Committee unanimously voting to retain the Monetary Policy Rate at 27.5% during its landmark 300th meeting. This decision reflected the committee’s assessment of moderating inflationary pressures, with headline inflation declining to 23.71% in April from 24.23% in March, representing a 52-bp decrease…
Market Update
Foreign Exchange Market: In May, the USD/NGN market traded on a volatile yet relatively stable footing, supported by steady FX interventions and improved liquidity. Early in the month, declining oil prices and elevated FX demand pushed the pair to intraday highs of ₦1,614, but subsequent CBN interventions—totaling over $580 million across various sessions—helped moderate pressures. Sporadic inflows from exporters and foreign investor participation further bolstered liquidity, facilitating intermittent naira appreciation. The pair traded mostly within the ₦1,575–₦1,610 range during the month, with fixing rates fluctuating accordingly…
