IMF Backs CBN’s Stance Of Raising Interest Rates

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With the resolve of the Central Bank of Nigeria (CBN) to continue on its hawkish stance and hike benchmark interest rate as long as inflation remains high in the country, the International Monetary Fund has given its backing to higher interest rate as the world faces a slower growth.

The IMF in its latest World Economic Outlook (WEO) for October revised downwards the global growth forecast for 2023 to 2.7 per cent, 0.2 percentage points lower than the July forecast while that of this year is left unchanged.

For Nigeria, the growth projections for 2022 and 2023 were lowered from 3.4 and 3.2 per cents which was projected in July to 3.2 and 3.0 per cents respectively.

The CBN Governor had at the last Monetary Policy Meeting in September where rates were raised to 15.5 per cent had noted that while the higher rates may slow growth, it is needed to protect price stability.

IMF Research Department director, Pierre-Olivier Gourinchas, speaking at the press briefing on the WEO yesterday at…



Source: Leadership Newspaper