Nigeria's Central Bank Vows Aggressive Measures to Curb Inflation

The Central Bank of Nigeria (CBN) is committed to taking necessary actions to control double-digit inflation, which stood at 33.95% in May. Despite high interest rates stifling growth, Governor Yemi Cardoso assured business leaders that the CBN's monetary policy would be guided by data over emotions, promising future moderation in price pressures.

The Central Bank of Nigeria (CBN) vowed on Thursday to take all necessary measures to curb the country's double-digit inflation, which hit 33.95% in May. Governor Yemi Cardoso expressed optimism that price pressures would ease and interest rates would decline in the near future.

Despite pressures from businesses affected by high interest rates, Cardoso assured that the monetary policy committee's decisions would remain data-driven. In May, the central bank increased the main lending rate to 26.25%, marking the third rise this year. The next rate decision is scheduled for July 23.

Addressing business leaders in Lagos, Cardoso emphasized the CBN's commitment to taming inflation, attributing the high rates to excessive money supply and previous government's borrowing from the central bank. Under President Bola Tinubu's administration, such practices have ceased, offering hope for stabilizing the economy.