By 
In a recent interview with the Financial Times, Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), affirmed the Monetary Policy Committee’s (MPC) unwavering commitment to addressing the persistent challenge of high inflation in the country.
Cardoso asserted that the MPC is resolute in implementing decisive measures to combat inflationary pressures, signaling a hawkish stance on monetary policy. He emphasized that interest rates would remain elevated for as long as necessary to effectively curb inflation.
Highlighting the MPC’s determination, Cardoso stressed that the committee is prepared to utilize all available tools to rein in soaring inflation rates. This resolve was evident from the outset, with significant increases in the benchmark lending rate during the first MPC meeting in February and subsequent adjustments in March.
With the upcoming MPC meeting slated for May 20-21, financial analysts anticipate further rate hikes to counter the persistent inflationary trends. Despite the aggressive stance on interest rates, Cardoso expressed optimism that elevated rates would not impede investment and production in the long term.
Addressing concerns about forex market volatility, Cardoso noted a moderation in exchange rate fluctuations, attributing it partially to the benefits of rate adjustments. He emphasized the importance of striking a balance in monetary policy decisions, acknowledging the trade-offs involved.
Regarding recent currency fluctuations, Cardoso highlighted increased investor confidence in the market, which has reduced the likelihood of abrupt capital outflows in response to currency volatility. He reiterated the CBN’s commitment to adopting orthodox monetary policies to guide economic stability and growth, signaling a departure from unconventional approaches.
In conclusion, Cardoso reaffirmed the CBN’s dedication to restoring stability and fostering sustainable economic growth through prudent monetary policies. Despite the challenges posed by inflationary pressures and exchange rate volatility, the central bank remains steadfast in its efforts to steer the economy towards resilience and prosperity.
Comments