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.

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