Nigeria's central bank now wants inflation in a range between 6-9 percent, its governor Lamido Sanusi told Reuters on Wednesday, lowering the regulator's previous target of simply keeping it under 10 percent.
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| CBN Gov, Sanusi |
Interest rates in the continent's second largest economy have been on hold at 12 percent for the last two years and despite lower prices a rate cut is not on the horizon.
"Subdued inflation will continue ... I do not think there is a chance of a rate cut in the near future," Sanusi told Reuters television at the World Islamic Economic Forum.
He added that the central bank had a longer term goal of reducing inflation to 5 percent, without giving a time frame.
Sanusi's tight monetary stance has often been aimed at supporting the under pressure naira currency. Last month, the central bank imposed new measures to tackle money laundering it says is causing a spike in demand for U.S. dollars that is weakening the naira.
Corruption in the build-up to Nigeria's 2015 election is partly responsible for the huge increase in demand for dollars, Sanusi says, limiting the likelihood of any loosening in policy before the nationwide vote.
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