FMDA’s Monthly report-November-2025: Highlights
- Global inflation eased broadly in November, prompting several central banks, including the Fed, South Africa, New Zealand, and Mexico to shift toward monetary easing. This reinforces expectations that domestic rates in Nigeria may gradually move lower in early 2026, despite the CBN holding MPR at 27% at its November meeting.
- Seasonal FX inflows from “Detty December” tourism and diaspora travel are expected to provide short-term support for the naira in December.
- System liquidity is expected to improve significantly in December, with a substantial N13.72 trillion in maturities and coupon payments scheduled for release. This sizeable liquidity injection will provide strong support for short-term interest rates and may have informed the CBN’s decision to hold the MPR for now.
- Yields on both bonds and treasury bills declined across maturities in November versus October, underscoring growing expectations of rate easing among investors.
