Nigeria’s Central Bank Governor, Yemi Cardoso, has said the interest rate hike in September was implemented to mitigate the inflationary effects of the recent petroleum price increase.
Mr Cardoso, while appearing before the House of Representatives Committee on Banking Regulations on Tuesday, explained that the bank had anticipated the price increase and used the interest rate hike to cushion its inflationary impact.
He stated that the outcome would have been different had the bank not taken the measure in anticipation.
“The MPC further tightened the policy rate at its September meeting in anticipation of an uptick in inflation due to the upward adjustment in the petroleum pump price.
“The further tightening that took place in September was in anticipation of a rise in prices. I am pleased that it happened, as the result would have been different had it not,” Mr Cardoso said.
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