US Fed cut rates
The US Federal Reserve slashed its key interest rate by 25bps to 1.75%p.a.-2%p.a. at its policy meeting. This was the second rate cut in 2019. The Fed was however vague about the future direction of monetary policy for the rest of the year. Nonetheless, lower US interest rates would mitigate the risk of capital flow reversals from Nigeria and would encourage the MPC to follow suit.
Demand for coffee set to increase
Coffee consumption in Nigeria rose by more than 20% between 2010 and 2015 and is expected to increase further. Nigeria is a fringe producer of coffee, with annual output estimated at 1,900 tonnes (0.02% of global output). As the country seeks to diversify from its oil dependence, a boost in domestic production of coffee could be crucial for economic growth.
In the slides, these and other issues were discussed on the Channels TV Business Morning programme today.
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