Thursday, August 1, 2019 /06:30PM / by FDC Ltd
In a widely anticipated move, the US Fed voted to cut interest rates by 25bps to 2%-2.25%pa. The decision is a ‘mid-cycle adjustment’ and reminiscent of a feedback monetary policy rule –where policy responds to specific events.
Nevertheless, Nigeria stands to benefit from an interest rate cut. A decline in its interest expense, a reversal of capital flows and a rally in oil prices is positive for Nigeria’s external buffers and fiscal position.
The attached slides addresses these and other issues in the domestic and global commodity markets.