The Central Bank of Nigeria (CBN) is expected to adjust its monetary policy by cutting the interest rate. This will be the first time Nigeria’s apex bank has made such a move since the COVID-19 pandemic.

If the cut is implemented, Nigeria will join South Africa, Egypt, and Algeria who begun lowering borrowing in the past year.

According to Bloomberg, this decision will be announced by the Monetary Policy Committee (MPC), led by Governor Olayemi Cardoso, on Tuesday.

Bloomberg surveyed five economists. The median estimate from five of them is to announce a 50 basis-point reduction to 27% while delivering the monetary policy committee’s decision by 2 pm today.

The research lead for African macroeconomics and strategy at Rand Merchant Bank, Samantha Singh-Jami, said the committee will likely ease policy after inflation slowed for a fifth straight month in August to 20% and the naira appreciated 2.8% since July.

“We continue to forecast a year-end policy rate of 25.5%,” said Singh-Jami

An analyst at Ebury, Michał Jóźwiak, noted that any decision to cut may be further emboldened by clarity on global trade as inflationary threats are diminishing.