Nigeria’s Central Financial institution has bowed to stress and is scheduling its first price hike assembly for February 26-27, 2024. Will probably be the primary price assembly since July 2023. In December, the Central Financial institution Governor Yemi Cardoso stated financial transmission mechanisms had rendered the speed conferences “largely ineffective.”
In accordance with a calendar launched by the financial institution at present, the CBN is proposing six price conferences all through 2024.
Financial Coverage Committee conferences, which set rates of interest, is an instrument by way of which the CBN controls inflation.
Nigeria’s inflation has soared all by way of 2023 to a 27-year high. Whereas specialists who’ve spoken to TechCabal on inflation figures have predicted rate of interest hikes, Yemi Cardoso has held out, failing to name any assembly since his appointment.
Adedayo Bakare, an funding analyst at Cash Africa, believes elevating curiosity nonetheless holds the important thing to curbing inflation.
“MPR is just not ineffective; the CBN has damaged the transmission of MPR to the monetary markets and the general economic system,” Bakare stated.
