Would you like to receive notifications on latest updates of the following headlines?

Higher interest rate necessary to check inflation- CBN

POSTED ON October 6, 2024 •   Business      BY Abiodun Saheed Omodara
Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso

The Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, has defended the bank’s decision to raise the Monetary Policy Rate to 27.25 per cent, describing it as a necessary move to control inflation and curb excess money in circulation.

This is according to a press statement from the apex bank on Sunday.

Speaking during an address at the Harvard Club of Nigeria over the weekend, Cardoso emphasised that the rate hike, while tough on borrowers, is crucial for the country’s economic stability.

“Our decision to raise the Monetary Policy Rate to 27.25 per cent was a bold move. Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation. Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these,” Cardoso said.

He noted that the CBN’s focus on core objectives, such as containing inflation, restoring credibility, and building public trust in the financial system, is critical to any meaningful recovery.

Cardoso’s remarks came as he reflected on his tenure as the head of the CBN, marking one year in office. He pointed out that trust is at the core of central banking, and without it, the effectiveness of the bank’s policies would diminish.

The CBN governor also said the introduction of the Electronic Foreign Exchange Matching System is a key initiative to enhance transparency and restore market confidence.

“Trust is the currency of central banking. If the public loses trust in the institution, the efficacy of its policies diminishes. Our decision to implement the Electronic Foreign Exchange Matching System is rooted in this understanding.

“By enhancing transparency and providing more accurate oversight of forex transactions, we send a strong signal that the CBN is serious about fair and efficient markets,” he said.

Cardoso also revisited the bank’s controversial decision to float the naira, a move that was met with public criticism.

He explained that the decision was necessary to bring the official exchange rate closer to market reality and reduce speculative trading.

He asserted that the move had started stabilising the currency markets and reducing speculative trading.

While the CBN has yet to fully achieve its inflation targets, Cardoso expressed optimism, citing recent reports from the National Bureau of Statistics (NBS), which showed inflation had begun to decline in July and August 2024.

He acknowledged that the bank’s policies are gradually steering the economy in the right direction, though challenges remain.

 

READ ALSO
Shettima urges RMAFC members to uphold transparency, fairness
BY Abiodun Saheed Omodara April 29, 2025 0

AKWA IBOM, Nigeria - The federal government has called on members of the Revenue Mobilisation Alloca...

READ ALSO
CBN allows cash transactions for 2025 pilgrims to Mecca following VP intervention
BY Abiodun Saheed Omodara April 25, 2025 0

ABUJA, Nigeria - The Central Bank of Nigeria (CBN) has granted permission for the 2025 intending pil...

READ ALSO
IMF urges Nigeria to exercise fiscal caution amid economic reforms
BY Abiodun Saheed Omodara April 24, 2025 0

The International Monetary Fund (IMF) has called on Nigeria to exercise caution in its expenditures...

READ ALSO
FG urges IMF, World Bank to bolster economic reforms in sub-saharan Africa
BY Abiodun Saheed Omodara April 24, 2025 0

Finance Minister Wale Edun has emphasized the need for increased global assistance to reform economi...

READ ALSO
Nigeria's Economic Reforms Boost Sovereign Credit Profile - IMF
BY Abiodun Saheed Omodara April 23, 2025 0

The Assistant Director for Global Markets at the International Monetary Fund (IMF), Jason Wu,  ...

READ ALSO
Trade Wars Take Center Stage at IM ,World Bank Spring Meetings
BY Abiodun Saheed Omodara April 22, 2025 0

Global finance leaders are convening in Washington this week for the semi-annual meetings of the Int...

READ ALSO
Kano secures $10bn investment for renewable energy, minerals in partnership with Morocco
BY Abiodun Saheed Omodara April 21, 2025 0

KANO, Nigeria (NAN) - The government of Kano state has announced that it will secure more than $10 b...

READ ALSO
RMAFC, ALGON collaborate to strengthen LG financial autonomy
BY Abiodun Saheed Omodara April 18, 2025 0

The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bell...

OUR CHANNELS:

6 Division of Nigerian Army Dismantles Illegal Oil Operations, Arrests Dozens of Suspects
BY Abiodun Saheed Omodara April 29, 2025 0

The 6 Division of the Nigerian Army has achieved notable progress in the fight against oil theft in...


Tragic cult attack claims four lives at beer parlour in Makurdi
BY Abiodun Saheed Omodara April 28, 2025 0

BENUE, Nigeria - The Police Command in Benue has verified the deaths of four individuals allegedly k...


FG secures $5.5bn private sector investment to transform health sector
BY Abiodun Saheed Omodara April 29, 2025 0

The Coordinating Minister of Health and Social Welfare, Professor Muhammad Pate, has announced a $5....


CIS president urges caution amid rising ponzi scheme threats
BY Abiodun Saheed Omodara April 28, 2025 0

The President and Chairman of the Council of the Chartered Institute of Stockbrokers (CIS), Oluropo...


Dismantling PDP threatens Nigeria's democracy- Lamido
BY Abiodun Saheed Omodara April 28, 2025 0

Former Governor of Jigawa State and prominent member of the People’s Democratic Party (PDP), S...


FG highlights growing cyber-slavery targeting Nigerian youth
BY Abiodun Saheed Omodara April 29, 2025 0

The federal government raised concerns on Sunday regarding the increasing threat of cyber-slavery in...


Nigeria to host 2026 forum of African defence, war colleges’ commandants
BY Abiodun Saheed Omodara April 29, 2025 0

ABUJA, Nigeria (NAN) - Nigeria has been selected to host the third installment of the Forum of Afric...


DSS operations yield 54 arrests, Gov. Sani commends Tinubu's appointment of Ajayi
BY Abiodun Saheed Omodara April 27, 2025 0

KADUNA, Nigeria - Kaduna Governor, Senator Uba Sani, has praised President Bola Tinubu for appointin...


Cyclist dies after collision with truck in Lagos
BY Abiodun Saheed Omodara April 27, 2025 0

LAGOS, Nigeria - The Lagos State Traffic Management Authority (LASTMA) announced on Sunday that a cy...


Nigeria accounts for 31% global malaria deaths
BY Abiodun Saheed Omodara April 27, 2025 0

Nigeria is responsible for 31 percent of global malaria fatalities and 27 percent of global cases, a...


More Articles

Load more...

Menu