The Central Bank of Nigeria (CBN) has announced a measured cut in its benchmark interest rate, seeking to stimulate economic growth while carefully monitoring inflationary pressures.
Governor Olayemi Cardoso stated that the decision was guided by the need to strike a balance between supporting business activity and ensuring price stability. “Our goal is to create conditions that foster growth without jeopardizing macroeconomic stability,” he explained during a post-Monetary Policy Committee briefing.
The rate adjustment comes amid slowing private sector expansion and calls from industry leaders for lower borrowing costs. Analysts say the move could ease credit constraints for small and medium enterprises (SMEs) and encourage investment in key sectors of the economy.
However, the CBN maintained that it would adopt a cautious stance in the months ahead, closely tracking inflation trends and global economic headwinds. Cardoso emphasized that monetary policy will remain flexible, with the bank prepared to tighten if inflationary risks re-emerge.
Economists view the decision as a calculated step to boost confidence in the domestic economy while maintaining Nigeria’s credibility with investors and international markets.
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