Governor Central Bank of Nigeria (CBN), Dr Olayemi Cardoso, has reiterated that the Monetary Policy Committee (MPC) will address Nigeria’s persistent inflationary pressures. In a recent interview on Monday, Cardoso stated that the MPC members would not relent in combating inflation.
According to him, interest rates would remain elevated for the foreseeable future as part of the strategy to curb inflation.
The CBN’s stance on inflation was evident, notably during the February MPC meeting when the committee implemented significant rate hikes. Since then, the benchmark lending rate has been raised to 24.75 per cent from 18.75 per cent.
Speaking to the Financial Times, Cardoso pledged that the MPC would take necessary measures to curb inflation hikes. The next MPC meeting is scheduled for May 20-21, and notably, there are expectations of a further rise in inflation figures.
Despite the obvious failings of some of the monetary policies in place, Cardoso expressed hope that high interest rates would not deter investment and production activities in the long term. Cardoso reassured investors of a more stable market environment regarding currency fluctuations and emphasised that the CBN is committed to orthodox monetary policies.
“Let’s face it: for a long period, the CBN did not embrace orthodox monetary policies. We want to go back to using an orthodox method, and it will take us to where we want to go”, he said.
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