Olayemi Cardosk, the governor of the Central Bank, has said that the country’s high interest rate will be continuously elevated until inflation reduces.
He also suggested that using manual means would help combat the current inflation in the country. Recall that in March 2024, the inflation rate was 33.20 per cent up from 31.70 per cent in February.
The rise in interest rates has significantly impacted the country, causing hardships for businesses and stalling governmental projects. This situation has also had repercussions on the foreign exchange market. “It’s not a zero-sum game. You lose on one side, you get on the other,” he said.
The CBN’s Monetary Policy Committee (MPC) increased the interest rate by 200 basis points in March to 24.75 per cent.
The CBN Governor reassured the public that the MPC is prepared to take decisive action to curb inflation, stating, “They will continue to do what has to be done to ensure that inflation comes down.”
Cardose also acknowledged a positive shift in policy, highlighting the CBN’s renewed focus on price and monetary stability. He also noted the stabilisation of the foreign exchange market, indicating a positive step towards economic recovery.
He said, according to the FX market,
“We want to go back to using an orthodox method, and it will take us to where we want to go.” The CBN governor also added that the Apex Bank had been reoriented to focus on price and monetary stability.
The CBN Governor also pointed out the recovery since the naira experienced a drastic increase in value. Previously, the naira was at its lowest level of N1,627.40 on March 8, 2024, but it dropped to N1,154.08 on April 18. Currently, the rate of the Naira has skyrocketed to N1,466.31 on May 10.
Discover more from Infodorm
Subscribe to get the latest posts sent to your email.