August 19, 2022

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Emefiele Hints on Monetary Policy Direction for Economic Growth

2 min read
Monetary Policy Direction

The CBN Governor, Godwin Emefiele, hinted on the major elements that would impact the rate-setting body’s decision to support the economy about a week before the bi-monthly session of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC).

In line with the apex bank’s strategic focus, Emefiele also stated that the MPC will chart a new route for improved monetary policy and that the CBN will give direction for monetary policy in Nigeria.

On Friday, the governor stated this at a Monetary Policy Committee, MPC, Strategic Retreat in Lakowe, Ibeju-Lekki, Lagos.
The focus of the retreat is “Monetary Policy Implementation in a Digitally-Evolving Developing Economy.”

Mr Emefiele stated that technology and innovation were playing a significant role in Nigeria’s output growth and economic development, highlighting the need to investigate innovative ways of adapting monetary policy tools to boost technology and innovation’s contribution to the growth equation.

He stated that monetary policy had been severely tested, as its policy space has decreased dramatically, paradoxically in some circumstances, forcing the need to rethink monetary policy in the context of rising difficulties and economic upheaval.

According to Mr Emefiele, while innovations bring numerous risks and uncertainties to sectors, they also have many benefits for positive economic change, particularly financial inclusion, which has been the primary accelerator for inclusive growth, poverty reduction, and job creation.

“I, therefore, commend our choice of the theme of this retreat ‘Monetary Policy Implementation in a Digitally-Evolving Developing Economy.

“The evolution of FinTechs, Cryptocurrencies, Digital Payments, Artificial Intelligence and Machine Learning, have changed the functioning of the financial and banking sectors, both globally and domestically.

“Therefore, the urgent call for the need to rethink financial system regulation, supervision and monetary policy implementation,’’ the CBN governor said.

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