CPPE urges CBN to suspend increase in interest rate

Ahead of Tuesday’s Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN), the Centre for the Promotion of Private Enterprise (CPPE) has asked the apex bank to suspend the planned increase in banks’ interest rate.
The Chief Executive Officer of the think-tank, Dr. Muda Yusuf, the call in an interview with journalists on Sunday in Lagos.
He urged the MPC to keep the increase minimal if there must be an increase at all.
The CBN had recently embarked on interest rate increase to tame inflation and stabilise the foreign exchange market.
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However, this has not worked out with the inflation rising to 34.19% while the forex market has witnessed significant volatility to reach almost N1,600/$ on the official market.
The consistent increase in interest rates has been condemned by members of the business community citing increases in the cost of accessing capital, among others.
Yusuf said: “Knowing the disposition of the Central Bank of Nigeria, given the fact that the bank has repeatedly affirmed its commitment to tame inflation, there is a very high probability that the MPC is likely to hike interest rates, although it may be marginal.”
“My wish is that the Central Bank should put a hold on interest rate hikes for now. I believe that monetary policy instruments have been practically over-stretched in this quest to tame inflation.”
By: Babajide Okeowo
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