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By Chinwendu Obienyi
The Central Bank of Nigeria (CBN) has said its in-house model-based simulations indicate that inflation rate could fall steadily to less than 15 per cent by the end of 2023.
This was even as the apex bank reiterated that it is determined to maintain its stable exchange policy stance over the next few months through innovative policy measures to manage the demand and supply of foreign exchange.
The CBN Governor, Godwin Emefiele, stated this during the 57th Annual Bankers Award Dinner which held in Lagos at the weekend.
The short-term outlook of the global economy is increasingly bleak as the lingering effects of the pandemic-induced supply chain disruptions and economic fragmentation is worsened by the uncertainties triggered by the eruption of the Russian-Ukraine war.
The IMF has projected that more than a third of the global economies will suffer a recession within the next two years, especially as the US, EU and Chinese economies stagnate.
As external conditions flounders, Emefiele said inflationary pressure is expected to worsen and become more persistent in many economies. He noted that the rate in key advanced economies is projected to remain historically elevated at double digit levels up to the third quarter (Q3) of 2023 at the earliest while adding that tight monetary conditions will remain prevalent over the short-term, straining financial markets in many Emerging Markets and Developing Economies (EMDEs) and exacerbating the underlying vulnerabilities.
