Central Bank of Nigeria Governor, Olayemi Cardoso, has announced that the Monetary Policy Committee raised the country’s interest rate to 27.25% to combat inflation.
In a press statement released on Sunday, Cardoso described the decision as essential to controlling inflation and reducing excess money in circulation. Speaking at the Harvard Club of Nigeria over the weekend, he acknowledged that while the rate hike is tough for borrowers, it is necessary for the country’s long-term economic stability.
“Our decision to raise the Monetary Policy Rate to 27.25% was a bold move. Higher interest rates, though painful for borrowers, are crucial for curbing excess liquidity and controlling inflation. Leadership is about making difficult choices for long-term stability, even when they bring short-term discomfort,” he said.
Cardoso also explained that building public trust was a key reason behind the recent introduction of the Electronic Foreign Exchange Matching System by the Central Bank.
“Trust is the foundation of central banking. Without it, our policies lose effectiveness. The implementation of the Electronic Foreign Exchange Matching System reflects our commitment to transparency and fair markets,” he noted.
This comes as Nigeria’s inflation rate reached 32.15% in August, and despite recent declines, prices for goods and services remain high.
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