Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has hinted at possible reductions in high interest rates in the coming months if inflationary pressures continue to subside.
Speaking at the annual Bankers' Dinner in Lagos, Cardoso emphasized that the 875 basis points of rate hikes this year were necessary to curb inflation and stabilize the economy.
He assured stakeholders that the measures are temporary, adding that rates will be adjusted as inflation shows sustained improvement.
Cardoso, installed by President Bola Tinubu in September 2023, used his speech at the same dinner last year to pledge a return to orthodox monetary policy. Since then, he has allowed the naira to trade more flexibly against the dollar and pursued aggressive interest-rate increases to curb rising inflation.
Africa’s most populous nation has seen inflation climb to 33.9% in October, near its highest level since 1996, stoked by fuel and food price increases and persistent currency weakness, which has made imports more costly.