Cardoso: New MPC to focus on price stability, inflation
Governor of Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has said that the apex bank, under his leadership, is fully focused on stabilization of prices and lowering inflation, adding that the regulator’s new Monetary Policy Committee (MPC) will reflect “the new direction of the CBN focus and core mandate.”
Cardoso, who stated this while speaking during an interview on Arise Television yesterday, also disclosed that the new members of the MPC would be unveiled before the Committee’s next meeting scheduled for February 26 and 27. The meeting will be the first to be chaired by Cardoso since he assumed office in September. According to him, the MPC meeting has not held in the last few months because he was concerned about the transmission of monetary policy under the former MPC, which he described as “questionable.” He said: “Firstly, I was a bit concerned when I became governor of the central bank and engaging with various stakeholders, both internally and externally, that a lot of work seems to have been done around MPC. A lot of work, a lot of discussions have been held around it and you know what, I was concerned that transmission was questionable.
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“I didn’t want a situation where we start back on that same trajectory. It is for that same reason that we took our time to ensure that we put ourselves in a position where the MPC will be impactful and where it will complement the activities of the fiscal side. “Before that time, you will know the new MPC members who are all independent-minded people and people who will make decisions in the best interest of the country, and will not be emotional about how those decisions are taken.” Giving details about the forthcoming MPC meeting, Cardoso emphasized that the new MPC members were all independentminded people.
“Before that time (February 26), you will know the new MPC members who are all independent-minded people and people who will make decisions in the best interest of the country, and will not be emotional about how those decisions are taken. “So I am hopeful with the renewed focus of the central bank that is fully focused on stabilising prices and controlling inflation. We have a great responsibility to ensure that the right decisions are made that will lower inflation and its impact,” he stated. On inflation, he said: “If you look at the IMF forecast for Nigeria, there’s a significant decrease in inflation for Nigeria this time next year or by the end of the year.
