The CBN Governor, Yemi Cardoso expressed his concerns about the impact of previous Monetary Policy Committee (MPC) meetings.
Cardoso, who disclosed this during an interview on Arise TV on Monday, noted that the focus of the next MPC meeting, his first, will be to ensure that it is “impactful” and “complements the activity of the fiscal side.”
Cardoso emphasized that despite previous efforts, upon assuming the role of CBN Governor, his concern about the MPC was that “transmission was questionable” referring to the impact of the previous rate hikes on inflation figures.
He added, “I didn’t want a situation where we start back on that same trajectory. It is for that same reason that we took our time to ensure that we put ourselves in a position where the MPC will be impactful and where it will complement the activities of the fiscal side.”
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Cardoso who will be chairing his MPC meeting as a CBN Governor highlighted that the focus of the Central Bank under him was to stabilize prices and control inflation.
He noted, “If you look at the IMF forecast for Nigeria. According to the forecast, there’s a significant decrease in inflation for Nigeria this time next year or by the end of the year. And that is as a result of the tightening that we’re doing.”
He also noted that the new members of the Monetary Policy Committee will be unveiled before the next MPC meeting, scheduled for February 26 and 27.
Cardoso noted, “Before that time, you will know the new MPC members who are all independent-minded people and people who will make decisions in the best interest of the country. And will not be emotional about how those decisions are taken.”
Recall that there was an imbroglio regarding the payment of the five external members of the MPC. A situation that prompted the CBN to announce that it was appointing new members to the MPC.
The CBN has been on a rate hike spree since May 2022, moving from 13.0% to 18.75% during the July 2023 MPC meeting. However, from May 2022, Nigeria’s inflation rate has moved from 17.71% to 28.92% in December 2023.