Dr. Olayemi Cardoso, the governor of the Central Bank of Nigeria, has said that the bank will soon be able to reduce the growth rate in the benchmark interest rate.
Cardoso made this statement on Saturday in Lagos during the book launch of Ray Echebiri’s book, “The Power of One Man: How the Soludo-Engineered Consolidation Transformed Nigerian Banks to Global Players.”
Maintaining higher interest rates is critical to reducing the risk of hyperinflation and its aftereffects, according to the CBN governor, who was represented by Phillip Ikeazor, the deputy governor of financial stability.
He said,
On how long the rate hikes will be maintained, The Punch reported that the regulator said that it will be as long the bank can control and can reverse galloping inflation.
He said,
Cardoso had declared in May that interest rate increases would continue until the inflation problem was resolved.
Cardoso stated in a Financial Times article that all signs pointed to the MPC taking all necessary steps to control inflation.
He said,
According to the National Bureau of Statistics, in May 2024, the headline inflation rate increased to 33.95 per cent relative to 33.69 per cent in April.
TimesNow.com.ng reported that Aliko Dangote, the chairman and CEO of the Dangote Group, has criticised the Central Bank of Nigeria (CBN) for its most recent interest rate increase, which brought it to nearly 30%.
Dangote said businesses could not keep up with the present rate while addressing the audience on Tuesday at the banquet hall of the State House in Abuja, during the opening session of a three-day summit organised by the Manufacturers Association of Nigeria (MAN)
Recall that the Monetary Policy Committee (MPC) of the CBN decided to raise the MPR from 24.75% to 26.25% in May, marking the third consecutive hike, after a two-day meeting.
Source: TimesNow.com.ng
