CPPE calls on CBN to suspend interest rate hike

Ahead of the meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Tuesday, the Centre for the Promotion of Private Enterprise (CPPE) has called on the central bank to suspend the planned increase in bank interest rates.

The think tank’s chairman, Dr. Muda Yusuf, expressed this wish in an interview with journalists in Lagos on Sunday.

He urged the MPC to keep the increase as low as possible, if one has to be increased at all.

The CBN recently initiated interest rate hikes to curb inflation and stabilize the foreign exchange market.

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However, this did not work as inflation rose to 34.19% while the foreign exchange market experienced significant volatility, reaching almost N1,600/$ in the official market.

The business world condemns the steady rise in interest rates and points, among other things, to increased costs in raising capital.

Yusuf said: “Knowing the stance of the Central Bank of Nigeria and considering that the bank has repeatedly reiterated its commitment to curbing inflation, the likelihood that the MPC will raise interest rates, albeit only marginally, is very high.”

“My wish is that the central bank will suspend interest rate hikes for the time being. I believe that the monetary policy instruments have been practically overstretched in this attempt to contain inflation.”

By: Babajide Okeowo

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