Why We Can’t Cut Interest Rate Now- CBN

Speaking at an NBA event recently, the CBN governor said; “in view of the dilemma of tackling these problems simultaneously, the optimal solution would be to prioritise and address them sequentially. Given our core mandate, and the pervasive effect of high inflation and exchange rate volatility, we chose to tackle these two head-on.

“It is important to highlight that high inflation is a significant inhibitor of economic growth. High inflation is not only harmful to growth in the long run, it discourages saving and inhibits planning and investment as people become more skeptical on the direction of prices of goods and services.

Meanwhile, in a bid to forestall losing out of the benefits of the most potent currency in the world, the CBN, Crypto Consulting Ltd and other stakeholders on crypto currency met to seek ways of exploiting the benefits of crypto currency.

Despite the several calls from the real sector for a cut in the benchmark interest rate, the governor of the Central Bank of Nigeria, (CBN) Godwin Emefiele has reiterated the decision of the apex bank to hold rates saying a cut in rates would cause the economy to sink further into recession.