CBN’s Ambitious Plan: Targeting 21.4% Inflation Rate By 2024, says Cardoso

CBN’s Ambitious Plan: Targeting 21.4% Inflation Rate By 2024, says Cardoso....KINDLY READ THE FULL STORY HERE▶

The Central Bank of Nigeria (CBN), under the leadership of Mr. Olayemi Cardoso, has outlined its commitment to reducing the headline inflation rate to 21.4% in the current year. This declaration was made during Cardoso’s keynote address at the launch of the Nigeria Economic Summit Group 2024 Economic Outlook report……CONTINUE READING

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Highlighting the challenges faced, Cardoso acknowledged the rise in the inflation rate to 28.92% at the close of 2023, marking a significant increase of 7.58 percentage points from the previous year’s figure of 21.34%. Despite this, he expressed confidence in the CBN’s inflation-targeting policy, coupled with advancements in agricultural productivity and an anticipated reduction in the pump price of petroleum products, as effective measures to alleviate inflationary pressures in 2024.

Cardoso emphasized the crucial role of expected changes in the prices of Premium Motor Spirit (PMS) in influencing the economic landscape. He noted that the operational status of key government and privately owned refineries in 2024 is anticipated to lead to a moderation in pump prices, contributing substantially to overall economic efficiency and resilience.

The CBN’s inflation-targeting policy, Cardoso explained, involves a comprehensive approach encompassing clear communication, the use of monetary policy instruments, and collaboration with fiscal authorities. The aim is to achieve price stability, foster market confidence, and positively impact consumer behavior. The expected decline in inflation in 2024 is anticipated to result from this strategy, supported by improved agricultural productivity and a reduction in global supply chain pressures. These factors are expected to enhance consumer confidence and purchasing power, providing a favorable environment for businesses.

In conclusion, Cardoso highlighted the positive ramifications of decreasing inflation in 2024, projecting a more predictable cost environment for businesses. This, in turn, could lead to lowered policy rates, stimulating investment, fostering growth, and generating job opportunities. Additionally, the CBN has shifted back to a conventional monetary policy approach with a focus on attaining price stability, aiming to support sustainable economic growth for Nigeria.

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