The new Governor of the Central Bank of Nigeria (CBN) Mr Godwin Emefiele, has promised to work towards a gradual reduction in interest rates to a single digit.
Mr Emefiele made the pledge at his maiden press conference held yesterday at the bank’s headquarters in Abuja.
“There is no doubt that reducing interest rates and maintaining exchange rates are very daunting twin goals,” he said “however, the central bank will work assiduously to ensure that these goals are mutually achieved.”
“High interest rates create a perverse incentive for commercial banks to simply buy virtually risk-free government bonds rather than lend to the real sector,” he added.
Mr Emefiele added that bank will continue to strive to maintain exchange rate stability and preserve the value of the domestic currency.
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