CBN reveals inflation rate will rise to 11.4% as stock market loses N581bn
Nigeria’s economy is slowly receding into a place of caution as the Central Bank of Nigeria, CBN reveals the impending rise in the rate of inflation.
Speaking on Nigeria’s outloook and policy for 2019, the CBN Governor, Godwin Emefiele disclosed that there will be a slight increase in the inflation rate of the country from now till mid-2019.
“Inflation expectations are rising on the backdrop of anticipated politically related liquidity injections. For the rest of 2018 and towards mid-2019, Nigeria’s rate of inflation is projected to rise slightly to about 11.4 per cent and then moderate thereafter,” he said.
The Nigerian Stock Exchange had reported earlier that it has recorded a historical loss of N581bn in November as the market capitalization of equities listed on the exchange dropped from N11.852tn on October 31, 2018 to N11.271tn on November 30.
This loss has invariably weakened the stock exchange market which has been fluctuating at the backdrop of recent recession and heated political landscape.
Emefiele has expressed optimism on the ability of the apex bank to maintain stability in the economy and keep exchange rate which he say is being impacted by the forthcoming elections from further depreciation.
“Gross stability is projected in the foreign exchange market given increased oil-related inflows and contained import bill. I would like to make it categorically clear that sustaining a stable exchange rate is of overriding importance to us even as we continue to put measures in place to shore up reserves,” he said.
