CPPE urges CBN to delay interest rate hike

Ahead of Tuesday’s Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting, the Centre for the Promotion of Private Enterprise (CPPE) has asked the central bank to suspend plans to increase bank rates.

The think tank’s Chief Executive, Dr. Muda Yusuf, made the call in an interview with journalists on Sunday in Lagos.

He urged the MPC to keep the hike to a minimum if there had to be one.

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

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

The consistent increase in interest rates has been criticized by members of the business community on the grounds of increasing the cost of accessing capital, among other things.

Yusuf said: “Given the position of the Central Bank of Nigeria, given the fact that the bank has repeatedly reiterated its commitment to controlling inflation, there is a very high probability that the Central Bank will raise interest rates, although perhaps only slightly.”

“My wish is for the Central Bank to hold off on raising interest rates for now. I believe the monetary policy tools have been overused in an attempt to control inflation.”

By: Babajide Okeowo

CPPE urges CBN to delay rate hike first appeared on Latest Nigeria News | Top Stories from Ripples Nigeria.