Dear Subscriber,

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.

In the slides, these and other issues were discussed on the Channels TV Business Morning programme today.

Enjoy your read!