Manager, Market Analyst, FXTM, Lukman Otunuga, said the third quarter (Q3) gross domestic product (GDP), billed to be published ain the coming days, shows more signs of recovery and may encourage the Central Bank of Nigeria (CBN) to pursue its expansionary monetary policy.

Otunuga said November could end with a “bang” due to a lineup of high-impact events.

He said the CBN could cut rates as much as 100 basis points today as inflationary pressures cool.

He noted that yearly inflation has slowed to its softest level since March 2022.

Persistent signs of easing inflation pressure have provided space for the CBN to cut rates in an effort to stimulate growth.

According to him, equity markets have already kicked off on a positive note with tech leading gains amid rising expectations for a U.S. December rate cut.

“A string of dovish messages by Fed officials last Friday boosted these odds to 70 per cent, but incoming U.S. data may either reinforce or shave these bets,” he said.