About 61.1 per cent of Nigerians want the Central Bank of Nigeria to reduce interest rates ahead of the Monetary Policy Committee meeting scheduled for July 20 and 21, according to the apex bank’s June 2026 Inflation Expectations Survey.
The report showed that 27.8 per cent of respondents preferred the Monetary Policy Rate to remain at its current 26.5 per cent, while 11.1 per cent supported a further increase.
The MPC is expected to decide whether to cut, retain or raise the benchmark rate after leaving it unchanged at its May meeting, following a 50-basis-point reduction in February.
According to the survey, the demand for lower interest rates was driven largely by businesses struggling with high borrowing costs.
“The majority of respondents want CBN to reduce interest rate, a perception driven by business respondents,” the report stated.
Despite easing headline inflation, most respondents said they still viewed inflation as high. The Inflation Perception Index stood at 45 points in June, although it is expected to moderate to 32.2 points in July.
Overall, 71.3 per cent of respondents described inflation as high in June, compared with 70.5 per cent in May.
Households felt the impact more than businesses, with 76 per cent of households saying inflation remained high, compared with 67.3 per cent of businesses.
Lower-income households reported the highest inflationary pressure, with 80.2 per cent of respondents earning below ₦70,000 monthly saying inflation was high. Rural households also reported stronger inflationary pressures than urban residents.
Respondents identified energy costs, insecurity, interest rates and exchange rate fluctuations as the biggest drivers of inflation.
“Business and household respondents identified energy, insecurity, interest rate, and exchange rate as the major drivers of their perceptions of inflation,” the report said.
While most respondents expect inflation to continue rising in the short term, confidence in a gradual easing improved over the medium term.
The survey also found that 67.1 per cent of respondents said inflation had increased their spending in June, with most expecting expenditure to remain elevated over the next six months.
