Economy
Bank Of England Cuts Interest Rate As Inflation Slows
The Bank of England on Thursday said it was cutting its key interest further after UK inflation hit a three-year low and signalled more reductions.
As widely expected, the BoE trimmed borrowing costs by 25 basis points to 4.75 percent at a regular policy meeting, its second reduction since August. The US Federal Reserve is set to reduce rates later in the day.
“We have been able to cut interest rates again” after UK annual inflation fell below the BoE’s target, the central bank’s governor Andrew Bailey said in a statement.
The Consumer Prices Index in Britain stands at 1.7 percent, the lowest level since 2021 and below the two-percent target.
“We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much,” Bailey cautioned.
“But if the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here.”
Major central banks started this year to cut interest rates that had been hiked in efforts to tame inflation, which had soared following the end of Covid lockdowns and Russia’s invasion of Ukraine.
Sweden’s central bank slashed borrowing costs by 0.5 basis points Thursday — its fourth this year and biggest reduction in a decade — while Norway made no change.
The Fed is later expected to trim by 25 basis points in a decision unlikely to have been influenced by Donald Trump’s return to power, according to analysts.
The BoE update follows a maiden budget last week from Britain’s new Labour government that featured tax rises and increased borrowing.
In August, the BoE reduced it key rate for the first time since early 2020, from a 16-year high of 5.25 percent as UK inflation returned to normal levels.
But it decided against a second reduction in a row in September. There was no October meeting.
The BoE hiked borrowing costs 14 times between late 2021 — when they stood at a record-low 0.1 percent — and the second half of last year.
The Nigerian government has approved a N75 billion loan scheme with a nine per cent interest rate for 75,000 Micro, Small, and Medium Enterprises, MSMEs, across Nigeria.
Scheduled for launch in 2025, this scheme aims to foster economic growth by targeting women and youth-owned enterprises, creating jobs, and stimulating local economies.
Minister of Information and National Orientation, Alhaji Mohammed Idris, outlined the project’s goals at a town hall meeting in Abuja, noting its alignment with President Bola Tinubu’s Renewed Hope Agenda.
“This scheme is a concrete manifestation of Tinubu’s commitment to economic transformation. By focusing on MSMEs, which are the backbone of our economy, we aim to diversify income streams, boost exports, and provide valuable job opportunities,” he said.
The loan, a joint effort among the Federal Government, the Bank of Industry, BOI, and state governments, offers single-digit interest rates with individual loans capped at N1 million.
This move is expected to alleviate some of the challenges MSMEs face, particularly high production costs due to recent fuel subsidy removal.
The BOI’s Enugu Branch Head, Mrs Anuli Akabogu, highlighted this during a session in Enugu, saying: “The government understands the burdens MSMEs face; this fund is intended to ease the cost of production.”
At the sensitisation event in Akwa Ibom, Commissioner for Trade and Investment, John James, urged beneficiaries to prudently utilise the loan.
“This is an opportunity to scale your businesses responsibly. MSMEs drive economies globally, and we want the same for Nigeria,” he said.
To reach potential recipients, government agencies like the Corporate Affairs Commission, Federal Inland Revenue Service, and other partners have joined efforts, touring the nation to inform business owners of the application criteria.
In Kaduna, Governor Uba Sani, represented by his Special Adviser on Economic Matters, praised President Tinubu’s dedication to economic empowerment.
He noted: “This initiative proves Tinubu is a leader who listens to the needs of Nigerians. Through this, MSMEs will revitalise not just the local economy but bolster our national strength.”
BOI officials stressed the importance of following the correct application procedures.
Tola Adekunle-Johnson, Senior Special Assistant to the President on Job Creation, cautioned applicants against fraud.
“This loan has a fixed interest rate with no hidden fees. Visit any BOI branch to apply directly; don’t fall victim to middlemen,” he advised.
The scheme requires applicants to present key documents, including a federal civil service guarantor, to qualify.
Mr Michael Agidani, BOI manager in Ogun State, shared that the bank has already begun disbursing loans, with an initial N1 billion reaching MSMEs in the state.
As the rollout begins, the initiative’s reach is expected to improve national economic resilience, expand export capacities, and fulfill Tinubu’s vision of a revitalised Nigerian economy.
Naira appreciated to N1,725 per dollar in the parallel market from N1,735 per dollar last week Friday.
But the Naira depreciated to N1,676.9 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.
Data from FMDQ showed that the indicative exchange rate for NAFEM rose to N1,676.9 per dollar from N1,666.72 per dollar last weekend indicating N10.18 depreciation for the naira.
The volume of dollars traded (turnover) in the official market declined by 15.6 percent to $79.47 million from $94.2 million traded last week Friday.
Consequently, the margin between the parallel market and NAFEM rate narrowed to N48.1 per dollar from N68.28 per dollar last weekend.
WHEN we look at this month, USD was traded at ₦1740 at the beginning of this November on Friday, November 1, 2024. As at today with USD being traded at ₦1,735 we see a -17.39% decline for United States Dollar to Naira exchange rate for this month.
On this page, we are primarily focusing on the Black Market Dollar To Naira Exchange Rate Today, the USD to Naira currency pair are the most traded currency in the FX market.
Black Market Exchange Rates
Buying Rate
Selling Rate
Dollar to Naira 1735 1720
Pounds to Naira 2270 2250
Euro to Naira 1872 1845
Canadian Dollar to Naira 1239 1232
Rand to Naira 52 43
Dirham to Naira 0 0
Yuan to Naira 62 62
G.Cedi to Nair 70 50
CFA F. (XOF) To Naira 0.83 0.81
CFA F. (XAF) To Naira 0.74 0.74
Having full knowledge how much USD to NGN black market exchange rate today will give you a better opportunity to plan and make informed decisions.
Nairatoday.com
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