CBN to Maintain Tight Monetary Policy
Written by Adekoya on March 22, 2019
The Governor, Central Bank of Nigeria, Mr Godwin Emefiele, has projected that the current monetary policy stance of the bank is expected to continue while inflation is estimated to rise to 12 per cent and moderate thereafter.
He said this while making a presentation on ‘Setting the agenda for economic growth and business confidence,’ following the conduct of elections in 2019’, at the post-election economic agenda conference held in Lagos
According to the CBN Governor, the latest statistics put the country’s inflation rate at 11.31 per cent in February.
Mr Emefiele, who hinged the monetary policy stance of the bank on rising inflation expectations, however, noted that the bank would adjust the policy rate in line with unfolding conditions and outlooks.
Like it did in 2018, he said the bank would continue in its drive to ensure that the policy interest rate was set to balance the objectives of price stability with output stabilisation.
On the exchange rate policy, he said the bank, in spite of expected pressures from the volatility in the crude oil markets, would maintain its stable exchange rate over the next year.
Mr Emefiele expressed optimism that the country’s Balance of Payments would remain positive in the short-term, adding that the current account balance could improve further if oil prices continued to recover.