World Bank Doubts CBN’s Ability To Curb Inflation Employing Rate Hikes

licies to rein in inflation.

“Risks to Nigeria’s growth outlook are substantial, including the possibility that the tightening of monetary policy stops short of reining in inflation,” the World Bank stated.

Despite the CBN’s aggressive interest rate hikes, inflation remains a significant challenge for the country.

The monetary policy rate has increased by 750 basis points since February, reaching 26.25 per cent in May.

However, the World Bank warns that this may not be enough to address the issue.

The report predicts that Nigeria’s economic growth will remain modest, at 3.3 per cent this year and 3.5 per cent in 2025.

The non-oil economy is expected to experience sustained growth, while the oil sector is expected to stabilize as production recovers.

The World Bank also highlights the issue of public debt in sub-Saharan Africa, which is expected to remain elevated over the forecast period.

It noted that “If global interest rates remain high, debt-service costs for countries in the region may rise, increasing the risk of government debt distress.”

Source:- Punchng