CBN Governor Cardoso Anticipates Lower Interest Rates, Stresses Inflation Control Measures

By Milcah Tanimu

In a recent statement, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso hinted that interest rates would remain elevated until inflation subsides, emphasizing the importance of combating inflation through orthodox monetary policies.

Cardoso affirmed the CBN’s commitment to implementing conventional measures to rein in inflation, highlighting the Monetary Policy Committee’s efforts in this regard.

Acknowledging the recent surge in Nigeria’s inflation rate to 33.20% in March, Cardoso underscored the necessity of adopting orthodox monetary policies to achieve monetary stability.

He noted a shift towards a more orthodox approach in monetary policy, aiming to steer the economy towards desired objectives.

Commenting on the stability of the official foreign exchange (FX) market window, Cardoso indicated that investors’ confidence in the market has increased, leading to a more stable FX market environment.

Despite acknowledging the adverse impact of high interest rates on investment and production, Cardoso stressed their importance in curbing inflationary pressures.

He attributed the recent surge in inflation primarily to distortions in the market, particularly in food prices, highlighting the challenges faced by the CBN in directly controlling these factors.

Cardoso’s remarks shed light on the CBN’s strategy to navigate economic challenges and prioritize inflation control while ensuring stability in the financial markets.


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