CBN Lowers Nigeria Inflation Target to 6%-9% for Next Year

The Central Bank of Nigeria (CBN) lowered its inflation target band for next year to between six percent and nine percent, Governor Lamido Sanusi said.
The bank ideally wants to reduce the target range to five percent to 8 percent in 2015 and then three percent to six percent the year after that, Sanusi said in an interview in Oslo, where he was attending a Norway-Africa business conference. The timing and success of that is being complicated by Nigeria holding elections in 2015, he said.
“There is a general sense now that the central bank has established its credibility as a price stability central bank,” he said. “We have been able to anchor expectations and we can anchor them better.”
Policy makers have kept the benchmark interest rate unchanged at 12 percent since November 2011 to support the currency of Africa’s largest oil producer and meet a target of keeping inflation under 10 percent. Consumer prices rose 8 percent in September compared with a year earlier.
Sansei, 52, has said he won’t seek to renew his term when it expires in June.

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