The Central Bank of Nigeria (CBN) has provided a detailed rationale for its recent significant hikes in the Monetary Policy Rate (MPR), outlining the expected impact on the economy.
CBN Governor Olayemi Cardoso conveyed these insights during discussions with the Organised Private Sector (OPS) and the Bank’s leadership, aimed at enhancing Nigeria’s financial sector strategies.
In a statement from the CBN’s Corporate Communication Office, the dialogue emphasized the role of effective monetary policy communication in shaping global perceptions of Nigeria and fostering sectoral growth. Cardoso underscored the crucial role of private sector collaboration in economic policy formulation, highlighting it as pivotal for driving economic growth.
Participants at the meeting pledged to establish a collaborative framework with top leadership, including the Nigerian Economic Summit Group (NESG), to harmonize economic policies and ensure robust CBN support for the private sector. Cardoso reaffirmed the CBN’s commitment to enhancing transparency, price stability, and economic growth through improved monetary policy communication and forward guidance.
Addressing concerns over economic confidence, Cardoso assured stakeholders of ongoing efforts to bolster FX supply while safeguarding the interests of all stakeholders. He emphasized the CBN’s strategic measures aimed at building a transparent economy to enhance investor confidence and improve Nigeria’s business environment.
The Governor also highlighted positive indicators such as a slowdown in month-on-month inflation and anticipated moderation in headline inflation throughout the third and fourth quarters of 2024.