The Centre for the Promotion of Private Enterprise (CPPE) has urged the Central Bank of Nigeria (CBN) to suspend it’s planned interest rate hike as the apex bank’s Monetary Policy Committee (MPC) meets today.
Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), emphasised the importance of this approach during an interview with the News Agency of Nigeria (NAN) on Sunday in Lagos.
Yusuf highlighted that the committee should aim to keep the increase minimal, acknowledging the Central Bank of Nigeria’s (CBN) efforts to stabilize the economy.
He stated, “Knowing the disposition of the Central Bank of Nigeria, given the fact that the bank has repeatedly affirmed its commitment to taming 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,”
The Central Bank’s monetary policy committee will meet today and tomorrow to decide to either hold or continue its interest rate hike since the beginning of the year. The CBN in the last three Monetary Policy Committee (MPC) have hiked interest rates by a record combined 750 basis points from 18.75% to 26.25%.
The apex bank opened the year with a 400 basis points hike in MPR in February from 18.75% to 22.75%. This was followed by another 200 basis points hike in interest rate in March and the last 150 basis points hike in May.