CBN gov says higher interest rate necessary to check inflation

Oct. 7, 2024 - Punch Newspapers

Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation. He noted that the CBN’s focus on core objectives, such as containing inflation, restoring credibility, and building public trust in the financial system, is critical to any meaningful recovery.

He pointed out that trust is at the core of central banking, and without it, the effectiveness of the bank’s policies would diminish. He explained that the decision was necessary to bring the official exchange rate closer to market reality and reduce speculative trading.

He acknowledged that the bank’s policies are gradually steering the economy in the right direction, though challenges remain...