Cardoso made this statement on Saturday in Lagos at the launch of a book titled ‘The Power of One Man: How the Soludo-Engineered Consolidation Transformed Nigerian Banks to Global Players’, authored by Ray Echebiri.
Represented by the CBN’s Deputy Governor of Financial Stability, Phillip Ikeazor, Cardoso disclosed the importance of maintaining high rates to prevent hyperinflation.
“Once you do not tame and control inflation and you get into hyperinflation, it takes you several years to get out of it," he explained, referencing examples from South America and East Africa.
The CBN's primary focus remains on price stability, maintaining a stable exchange rate, and promoting economic growth.
However, the timeline for maintaining rate hikes depends on the control and reversal of inflation.
Cardoso noted, “It is important that we tighten and hold on for a little while and in no distant future, we will be able to slow down on the rate hikes.”
In May, Cardoso had indicated that the CBN would continue interest rate hikes until inflation was under control.
According to the National Bureau of Statistics, the headline inflation rate increased to 33.95 percent in May 2024, up from 33.69 percent in April.
Subsequently, the Monetary Policy Committee of the CBN raised the benchmark lending rate by 150 basis points to 26.25 percent.
Former President Olusegun Obasanjo also stressed the need for fiscal and monetary policy synergy to achieve economic stability.
Lagos State Governor Babajide Sanwo-Olu echoed this sentiment, urging the CBN to take decisive actions to stabilize the economy and alleviate pressures on the private sector.
Professor Chukwuma Soludo, former CBN governor, recounted the challenges during the 2005 banking sector consolidation and encouraged the current CBN leadership to continue their efforts in recapitalizing banks to support economic growth.
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