What we must do before talking about economic growth – CBN

According to the Central Bank of Nigeria, every effort is being made to combat rising inflation in the country.

This was revealed on Friday during the bank’s second talk podcast episode, which was posted on its YouTube page. Dr. Adetona Adedeji is the interim director of the CBN’s Banking Supervision Department. 

He upheld the bank’s choice to put inflation control above efforts to address the growing unemployment rate. 

Although he acknowledged the possibility of effects in other sectors, Adedeji underlined during his speech that the Central Bank’s main objective is to reduce inflation. 

“The ultimate objective is for us to combat inflation. That is what the central bank is doing today. Whatever it takes to fight inflation, we are going to do that. It may have some impact in some areas.

“We can’t fight two things at the same time. There will be trade-offs. If you are fighting inflation, you can’t fight unemployment simultaneously. Even if you fight unemployment, it cannot reach the desired level. So, you have to choose either to fight inflation or unemployment. These two are macroeconomic objectives that are very critical to the development of the economy.

“But we are saying if we are talking of economic growth, it is because the economy is still relevant and available, which is why you are talking of economic growth. But if you look at an economy hit by inflation, you will not even talk of economic growth.

“So, it is essential that we concentrate and fight inflation. By bringing inflation down, we start talking of economic growth,” he said.

In the meantime, the nation’s inflation rate rose to 33.20 per cent in March despite the CBN continuously boosting interest rates, which were at 24.75 per cent at the time. 

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