Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said the orthodox monetary policies introduced are helping to tackle inflation in the country, hence the resolve to focus on them.
He said this in a communique at the end of the 298th Monetary Policy Committee (MPC) meeting in Abuja.
Cardoso reiterated that there was no going back on the current approach, adding that the central bank would deploy every tool at its disposal to curb inflation.
“Let me first say that the Central Bank is resolute and committed to continuing to fight the war against inflation. There’s no going back on that. And as I’ve said at previous fora, we are going to deploy everything in our arsenal to ensure that we are able to tame it.
“And of course this entails the return to Orthodox monetary policies. So, I think it is important to state that up front there’s no going back on that,” the CBN governor stated.
He pointed out that the effects of these policies would not be immediately visible as the timeline for policy implementation to have a tangible impact can range from six months to a year.
He, however, expressed optimism that the results would start to show by the first quarter of 2025, marking a crucial period for the country’s economic recovery.
Cardoso said: “Our own perspective is that we expect to see greater results in the first quarter of 2025 and you can do the math from the time we started tightening. So, we expect to see this in the first quarter of 2025.”
Cardoso also acknowledged the need for broader structural reforms to complement these efforts, pointing out that the central bank is working closely with relevant government agencies to address the underlying structural challenges that contribute to inflation, including supply disruptions and infrastructure deficiencies.
He also noted the ongoing challenges in the foreign exchange market, stressing that the CBN would continue to monitor and regulate the market to ensure it operates efficiently, reflecting the true value of the naira.
Cardoso also discussed the role of the CBN in ensuring price stability, particularly in the face of exchange rate pressures. He reiterated the importance of foreign exchange liquidity and promised that the bank would explore measures to enhance market stability.
