The Central Bank of Nigeria has stated that interest rate hikes in advanced nations will have little impact on the Nigerian economy since cash released as a result of stimulus programs in these countries did not flow into Nigeria.
This is according to Godwin Emefiele, the governor of the Central Bank of Nigeria, who spoke to the press after the MPC communique was read. He explained that the MPC voted to keep interest rates low in order to support the growth of the Nigerian economy.
He noted that Western economies are only hiking interest rates because they are facing severe inflationary pressures, but Nigeria has been experiencing moderations, with the exception of December 2021, which he described as a one-time event.
“Flows from advanced economies did not enter the Nigerian economy, Fortunately, during the period of stimulus release by international central banks, we saw a reversal in our portfolio investments as they felt our rates are not as desired.” Emefiele said.
Remember that the Federal Reserve of the United States announced that it will tighten monetary policy much faster than expected to combat persistently high inflation.
The MPR was kept at 11.5 percent, with an asymmetric corridor of +100/-700 basis points around it. The CRR was kept at 27.5 percent, and the liquidity ratio was kept at 30 percent.