- A wind of change is blowing in the Central Bank of Nigeria (CBN) as it is unwavering in its commitment to its price stability mandate.
- The monetary policy committee (MPC) once again reached for its hatchet, raising its monetary policy rate (MPR) by 100bps to 14% at the July meeting in its quest to bring inflation to the heel.
- While global central banks are taking only baby steps to tighten policy, the CBN’s policy trade-off is still high as price risks continue to dominate the inflation outlook.
- Inflation is the chief woe that can exacerbate Nigeria’s macroeconomic strains.
- However, one monetary glove fitting all 11 members’ hands increases the odds of reining it in more promptly.
- But for how long will the central bank keep up with its unbending anti-inflation stance?
- And will it be willing to sacrifice the current economic growth bright spot?
- I do not envy the choices facing the CBN as it navigates the shoals ahead.
- But for the sake of Nigeria’s economy, I wish them good luck. Or should I say “bonne chance”?
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