CBN’s monetary policy won’t solve inflation, World Bank warns

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CBN’s monetary policy won’t solve inflation, World Bank warns
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The World Bank has warned that the Central Bank of Nigeria’s (CBN) tightening of monetary policy will not effectively address inflation in the country. [ad] The Bretton Woods institution disclosed this in its global economic prospects report released on Wednesday.

The World Bank has warned that the Central Bank of Nigeria’s tightening of monetary policy will not effectively address inflation in the country.The Bretton Woods institution disclosed this in its global economic prospects report released on Wednesday.

“Risks to Nigeria’s growth outlook are substantial, including the possibility that the tightening of monetary policy stops short of reining in inflation,” said the World Bank in its report titled Global Economic Prospects.Despite the CBN’s increase in interest rates from 22.75% to 26.25% since February, the World Bank predicts that Nigeria’s economic growth will remain modest, at 3.3% in 2024 and 3.5% in 2025.

“Although inflation generally fell through 2023, it edged up again in early 2024, partly driven by food price inflation . Continued high, and partly rising, headline inflation, particularly in several larger SSA economies , prompted interest rate hikes in some cases .

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