Nigeria keeps tight monetary stance to tame inflation
ABUJA, canada goose clearance Sept 18 (Reuters) Nigeria central bank kept its base interest rate on hold for the sixth time in a row on Tuesday, welcoming improved growth canada goose coats on sale and a slight fall in headline inflation even Canada Goose Coats On Sale though core inflation remained stubbornly high.
The country oil dependent economy has seen roaring growth over the past year, but a slowdown in the first quarter showed how vulnerable it could be to global economic canada goose uk black friday uncertainty, while inflation, canada goose store driven by over dependence on canada goose clearance sale costly canada goose black friday sale imports, has Canada Goose Outlet remained in double digits.
The canada goose coats central bank move was in line with market expectations, with nine out of 11 economists cheap canada goose uk polled by Reuters on Monday expecting no changes in the base rate.
Central bank governor Lamido Sanusi also said the monetary policy committee had decided to keep buy canada goose jacket its cash reserve requirement at 12 percent, adding that the bank monetary measures would remain hawkish for canada goose the foreseeable future.
plan to keep monetary conditions very tight which means that we don see much of a risk of a very quick uk canada goose outlet reversal of capital flows unless there a major disaster in Europe and cheap Canada Goose United States, canadian goose jacket Sanusi said.
Growth in Africa second largest economy accelerated to 6.28 Canada Goose Parka percent in canada goose factory sale the second quarter from 6.17 percent in the first, while inflation fell for the second straight month in August, to 11.7 percent.
Sanusi said year Canada Goose sale end inflation figures were likely to come in lower than the bank had previously expected.
The bank has kept rates on hold since November after six successive hikes last year including a 275 basis point rise in October to 12 percent to ward off speculation against the naira, which Canada Goose Online fell 4.5 percent against the dollar in 2011.
In July, the central bank unexpectedly tightened liquidity to support the naira, which had lost around 3 percent of canadagooseoutleta its value since April and was adding to inflationary pressures.
It raised banks cash reserve requirement to 12 percent from 8 percent and reduced net open foreign exchange positions to one percent from three percent, driving the naira up.
The currency weakness had been aggravating inflation Nigeria imports four fifths of what it consumes.
committee noted that its position in the uk canada goose July MPC meeting appeared to have had some positive impact, Sanusi said at Tuesday meeting, citing a drop in year on year inflation, stability of short term Canada Goose Jackets rates around Canada Goose online the base rate, a build up in external reserves and stability in exchange rates.
But he added that inflation is still high at 14.7 percent in August, canada goose uk shop so a drop in rates could be premature, since the a current slowing in price rises was largely down to volatile food canada goose outleta costs.
policy could not therefore under the circumstance buy canada goose jacket cheap react to what may be purely a temporary phenomenon, he said.
With a stronger currency and declining inflation, most analysts expect the central bank to consider changing its policy stance in the near future but canada goose uk outlet think it is too early for a rate cut just yet. (Reporting by Camillus Eboh; Additional reporting by Chijioke Ohuocha and Mayowa Oludare in Lagos; Writing by Tim Cocks. Editing by Jane Merriman).