CBN unperturbed by planned rate normalization by US Fed, advanced economies

Nigeria’s economy will not be hit by plans by the US Fed and other advanced economies to normalize policy rates, Central Bank of Nigeria (CBN) Governor Godwin Emefiele said on Tuesday.

Emefiele was addressing a press conference to announce the outcomes of the two days meeting of the CBN Monetary Policy Committee ((MPC) which held all policy parameters constant, citing the need to wait out the impact of ongoing measures to tame inflation and drive growth.

The MPC left the Monetary Policy Rate (MPR) steady at 11.5%, Cash Reserve Ratio (CRR) at 27.4%, Liquidity Ratio (LR) at 30% and asymmetric corridor around the MPR at +100/-700 basis points.

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Speaking to the concerns that the planned rate hike by the FED and Advanced economies could result in capital outflows from the emerging and developing economies which in turn could exacerbate foreign exchange pressures, he said there was nothing to worry about as the said capital did not flow into Nigeria in the first place.

He also explained that those countries raising rates are rather concerned about rising inflation and capital outflows from their economies.

“There’s nothing to worry about. We are not in that game with them,” Emefiele stated.

…details shortly

Onyinye Nwachukwu

Onyinye Nwachukwu is the Abuja Bureau Chief of BusinessDay, overseeing coverage across Abuja and Northern Nigeria. With more than two decades of experience in economic and financial journalism, she reports on business, policy, and market trends, linking local developments to the global economy. A fellow of the International Monetary Fund (IMF) and recipient of the P. Vishwanathan Memorial Award for Excellence in Financial Journalism, she is known for her insightful storytelling and interviews with senior policymakers, diplomats, and business leaders. Well traveled and globally minded, Onyinye brings depth and international perspective to her reporting.