CBN: Cardoso Insists On High Interest Rates Ahead MPC

Nigeria’s Central Bank governor, Yemi Cardoso has promised that the interest rate will remain high until inflation comes down in the country.

The CBN boss made the remark during an interview with the Financial Times on Monday.

According to checks form the Nigerian Bureau of Statistics Nigeria’s headline inflation rate increased to 33.20 per cent in March 2024, up from 31.7 per cent in February 2024.

This represents a month-by-month increase of 1.5 per cent points in the headline inflation rate, according to NBS report.

Further checks indicate that food inflation rose to 40 percent in March, compared to the 24.45 percent rate recorded in the same period in 2023.

Cardoso said the Monetary Policy Meeting, MPC, coming up later this month will ensure everything is done to rein in inflation until “inflation comes down”.

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.

Cardoso said the apex bank had been “reoriented” to focus on “price and monetary stability”.

Recall that the MPC raised the benchmark interest rate by 200 basis points to 24.75 percent in march from 22.75 percent in February.

The Cardsos-led CB is likely to continue in the same trajectory in April, as part of its monetary control measures to tackle inflation keen financial told the magazine on Tuesday, adding that the action may not necessarily incentivise  investors.