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The Governor of the Central Bank of Nigeria, Dr Olayemi Cardoso, has announced plans to gradually reduce the benchmark interest rate in the near future.
Cardoso made this statement over the weekend in Lagos during the launch of a book titled ‘The Power of One Man: How the Soludo-Engineered Consolidation Transformed Nigerian Banks to Global Players’, written by Ray Echebiri.
Represented by the CBN’s Deputy Governor of Financial Stability, Phillip Ikeazor, Cardoso emphasized the importance of maintaining higher interest rates to prevent hyperinflation and its negative effects.
He highlighted the challenges faced by countries in South America and East Africa that are currently struggling with hyperinflation due to uncontrolled inflation.
The CBN's primary focus remains on achieving price stability, a steady exchange rate, and fostering economic growth, with a priority on avoiding hyperinflation.
The duration of the rate hikes will depend on the ability to control and reverse rapid inflation, with the intention to eventually ease off on the rate hikes in the near future. Cardoso's remarks in May also align with this stance.
