Some stakeholders predict a rise in policy rates as the Central Bank of Nigeria (CBN) convenes its Monetary Policy Committee (MPC) and announces its policy choices today.
NewsReport that this is against the backdrop of a global trend in monetary policy, which has seen the Bank of England and the American Central Bank (The Fed) raise their Monetary Policy Rates (MPR).
All other interest rates in the financial sector are influenced by the MPR, which serves as a benchmark rate.
The MPC had raised the MPR by 100 basis points from 13 percent to 14 percent in its last meeting in July.
The July increase represented the second consecutive hike in the MPR within two months.
The committee had in May, and for the first time since September 2020, increased MPR by 150 b
subsisting rates as past rate increases had not tamed inflation.
“Though I expect that they may further raise rates, my advice to the MPC will be that they hold rates.
“We have raised rates by 250 basis points in the last two meetings but inflation has surged further.
“This means that our inflation is not tightly linked with interest rates and may recede in its own time.
“Ours is a bit of a carryover from the COVID-19 era of production shut down and imported inflation because our economy is dependent on foreign ones battling inflation presently,” he said.