The Federal Reserve's latest statement shows changes compared to the one released in March. It expresses more concern about ongoing inflation and supply chain disruptions. The Fed also removes language indicating that it expects inflation to be transitory, acknowledging the persistence of price increases. This suggests the Fed may consider raising interest rates sooner than previously anticipated to keep inflation in check.
To combat high inflation and a plummeting currency, Nigeria's central bank has hiked interest rates to 24.75%. Despite a recent modest improvement, the naira still remains weakened compared to the dollar. The bank's members had varying views on the inflation drivers, leading to a wide range of proposed rate increases. The bank intends to continue tightening and prioritizes tackling inflation over economic growth concerns. Further hikes are expected in May and July before the tightening cycle concludes.
