Business
Reduce inflation, interest rates to restore economy, experts tell MPC ahead of meeting
Uneasy calm has gripped policy makers as expectations have remained high as the CBN’s Monetary Policy Committee (MPC) commences its two-day first meeting of 2017 on Monday through Tuesday.
Though the CBN had described the meeting as crucial, given the fact that all the projections of the committee in November 2016 could not be realised contrary to expectations, a total review of all polices as they relate to fiscal and monetary polices of government may not be changed.
But experts say the only pressing issue before the CBN apart from putting in place programmes aimed at arresting rising inflation and interest rates, is to face reality.
Read also: Nigeria can’t survive without borrowing –Adeosun
Dr. Solomon Emezon, a senior lecturer at the University of Lagos said: “This meeting affords the policy makers a rare opportunity to reverse themselves, firstly by checking inflation having an easy rein on the economy as inflation may hit as high as 20 per cent very soon and with interest rate also high at an all-time high of 18 per cent.
“If Nigeria is to enjoy early exit from recession, it should be taken for granted that the two monitoring instruments for economic growth, inflation and interest rates should be properly guided, but Nigeria is far from there.”
Another analyst, Robert Chukwu, an investment expert expressed doubt over the possibility of the MPC reversing itself despite expectations by Nigerians.
“I see pride and insensitivity on the part of the policy makers from doing the needful. Every economist knows that no economy records impressive growth with high interest rate regime as it discourages borrowing, while high inflation trend discourages patronage on goods and services.”
But most commentators say they identify with the Minister of Finance, Mrs. Kemi Adeosun, who has maintained that the CBN should reduce the two rates.
RipplesNigeria ….without borders, without fears
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
Animashaun Ayodeji
January 23, 2017 at 3:07 pm
I’ve always known, Adeosun and CBN governor are not capable, they’ve been toying with Nigeria’s economy. They are truly not sensitive to the things they need to do to stabilize Nigeria’s economy.
JOHNSON PETER
January 23, 2017 at 4:39 pm
You are just talking about adeosun and emefiele incompetences every time. Go remove them now and put yourself there as if you are better off.
Margret Dickson
January 23, 2017 at 3:10 pm
It is very clear now, Nigeria is still in recession because of Emefiele and Adeosun, they simply don’t know what to do, How can they be professionals and not know inflation and high interest rates cannot happen at the same time without directly affecting the economy negatively? Buhari should please remove these two people.
Joy Madu
January 24, 2017 at 11:47 am
removing this two people is not the problem but making this country a better place to be
seyi jelili
January 23, 2017 at 3:20 pm
Inflations can only be controlled via a strong price mechanism board to regulate prices of goods and services but we have not done that yet.
Balarabe musa
January 23, 2017 at 3:47 pm
Am so sure that our economy will be stimulated this year. All hands are on deck to end recession in Nigeria. There is light at the end of the tunnel.
Amarachi Okoye
January 24, 2017 at 11:28 am
i pray ooo if this will happen in this our country Nigeria .that means will are born to enjoy