CBN holds MPC meeting Monday as inflation soars

The Central Bank of Nigeria has announced its Monetary Policy Meeting to discuss measures to combat the country’s escalating inflation and economic hardship.

The meeting, scheduled for next Monday and Tuesday, will be the 296th MPC meeting and the fourth under the leadership of CBN Governor, Olayemi Cardoso, who was appointed in September 2023.

The CBN has been under pressure to address the rising inflation, which has seen the country’s interest rate soar to 26.25 per cent in May, up from 18.75 per cent in May 2023.

Despite calls from stakeholders in the financial sector to pause interest rate hikes, the CBN has maintained its tightening measures.

The Centre for the Promotion of Private Enterprise has previously advised the CBN against further interest rate increases, citing the need for businesses to recover from previous rate hikes. However, the CBN has insisted on its stance, citing the need to control inflation.

CPPE director-general Muda Yusuf advised the MPC to pause its tightening measures because of the increase in the recent inflation rates.

He said, “The persistent inflationary pressures in the Nigerian economy remained a major cause for concern because of the implications on purchasing power and operating costs for businesses.”

The latest inflation figures released by the National Bureau of Statistics show that headline and food inflation rose for the 19th consecutive time to 34.19 per cent and 40.87 per cent respectively, in June 2024.

This has led to increased pressure on the CBN to take decisive action to address the economic hardship faced by Nigerians.

The upcoming MPC meeting is expected to be closely watched by stakeholders and analysts, who will be looking for signs of a shift in the CBN’s monetary policy stance.

With the country’s economy facing significant challenges, the CBN’s decisions will have far-reaching implications for businesses, consumers, and the overall economic outlook.