Finance experts and analysts have advised the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) to pull the breaks on a further interest rate hikes ahead of its Monday to Tuesday 297th meeting.
A Director at the Institute of Capital Market Studies, Nasarawa State University, Keffi, Prof Uche Uwaleke, and a political economist, Prof Anthony Kila, gave the advice in separate interviews with the News Agency of Nigeria (NAN) on Saturday.
Uwaleke said given the country’s inflation rate, which has moderated for two consecutive months to 32.15 percent, the MPC should take a complete break from the interest rate hike, which currently stands at 26.75 percent.
According to him, a rate hike is negatively impacting Nigeria’s economic growth, especially the employment growth rate.
“Given that headline inflation has moderated in recent months, my advice to the MPC is to completely pause rate hikes.
“The adverse impact of high interest rates on economic growth and employment is becoming evident, especially in an economy grappling with stagflation,” he said.
On his part, Kila said for MPC’s decision to impact the economy directly, the CBN must review its approach to inflation and economic growth to reflect realities.
“For the MPC to truly matter, the CBN must review its approach to measuring inflation and economic growth to better reflect Nigerians’ realities,” Kila added.
The CBN has fixed Monday and Tuesday for its 297th MPC meeting.
