Saturday, November 23, 2024

CBN postpones interest rate meeting as old leadership resigns

The bank has yet to settle into a new leadership after acting CBN governor Folashodun Shonubi and his four deputies resigned.

The Central Bank of Nigeria has postponed its monetary policy meeting.

It comes a week after President Bola Tinubu appointed Olayemi Cardoso as CBN governor, and as the naira fell to record lows.

The MPC meeting scheduled for Sept. 25-26, was postponed until further notice, the central bank said in a statement on Thursday. It gave no reason for the shift.

The central bank announces its benchmark interest rates at the MPC meetings, and uses the rates to try to address inflation, drive growth and stabilize the naira.

Naira fall

The naira has fallen more than 60% since the new government of President Bola Tinubu in June removed controls and allowed the currency trade more freely.

On Wednesday, the currency traded at 985 to the U.S. dollar on the black market, and at ₦770.7 on the official market.

Nigeria’s inflation rate jumped to a more than 18-year high on rising energy and food prices in August, with consumer prices climbing an annual 25.8% in August, compared with 24.1% the previous month.

Annual food inflation quickened to 29%. The increases led to expectations the CBN would increase its lending rate further to try to cool prices, as it has done eight consecutive times since last year.

The bank has lifted rates by 725 basis points since May 2022 to 18.75%.

Leadership resigns

Cardoso is yet to make a policy announcement seeking to boost dollar liquidity and stabilize the naira.

The bank has yet to settle into a new leadership after acting CBN governor Folashodun Shonubi and his four deputies resigned following Cardoso’s appointment, Bloomberg reported.

President Tinubu also named four new deputy governors last week.


Discover more from Pluboard

Subscribe to get the latest posts sent to your email.

Pluboard leads in people-focused and issues-based journalism. Follow us on X and Facebook.

Latest Stories

- Advertisement -spot_img

More From Pluboard

Discover more from Pluboard

Subscribe now to keep reading and get access to the full archive.

Continue reading