Interest rates will remain high until inflation subsides – Governor Cardoso

Date:

May 14, 2024.

Thank you for reading this post, don't forget to subscribe!

Azonuchechi Chukwu.

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said that interest rates will remain high until the inflation rate is tamed.

Cardoso, who said that the CBN Monetary Policy Committee, MPC, was taking all necessary measures to combat inflation, disclosed that conventional policies would be put in place to address the problem.

Naija247news recall that Nigeria’s inflation rate climbed to 33.20 per cent in March, up from 31.70 per cent in February, prompting the CBN Monetary Policy Committee to increase the interest rate by 200 basis points in March to 24.75 per cent.

Speaking on the matter, Cardoso said: “They will continue to do what has to be done to ensure that inflation comes down. Let’s face it: for a long period of time, the CBN did not embrace orthodox monetary policies.

“We want to go back to using an orthodox method, and it will take us to where we want to go.”

According to him, the apex bank had been “reoriented” to focus on “price and monetary stability”, stating that the official window of the foreign exchange (FX) market has been brought to a stable state.

He said investors previously had a “tendency to head for the window” in response to currency fluctuations, however, there has been a “fundamental shift”.

He noted that high interest rates would not linger for too long and act as a disincentive to investment and production.

“Hiking interest rates obviously has had a dampening effect on the foreign exchange market, so that has begun to moderate. It’s not a zero-sum game. You lose on one side, you get on the other,” he said.

He said inflation was higher than he had hoped, blaming “distortions” mainly due to high food prices.(www.naija247news.com).


Discover more from Naija247news

Subscribe to get the latest posts to your email.

Azonuchechi Chukwu
Azonuchechi Chukwuhttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

Share post:

Subscribe

Popular

More like this
Related

Wealthy Nations Profit from Climate Aid Meant for Developing Countries

A Reuters review of U.N. and OECD data reveals...

Governor Fubara Criticizes Resigned Pro-Wike Commissioners for Poor Record-Keeping

Rivers State Governor, Siminalayi Fubara, has criticized several former...

ADC’s Derek Izedonmwen Declares Himself True Successor to Gov Obaseki, Criticizes PDP’s Asue Ighodalo

The African Democratic Congress (ADC) has asserted that its...

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading