Business
CPPE urges CBN to suspend increase in interest rate
Ahead of Tuesday’s Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN), the Centre for the Promotion of Private Enterprise (CPPE) has asked the apex bank to suspend the planned increase in banks’ interest rate.
The Chief Executive Officer of the think-tank, Dr. Muda Yusuf, the call in an interview with journalists on Sunday in Lagos.
He urged the MPC to keep the increase minimal if there must be an increase at all.
The CBN had recently embarked on interest rate increase to tame inflation and stabilise the foreign exchange market.
READ ALSO:CBN finally takes over dormant accounts, to invest funds in treasury bills
However, this has not worked out with the inflation rising to 34.19% while the forex market has witnessed significant volatility to reach almost N1,600/$ on the official market.
The consistent increase in interest rates has been condemned by members of the business community citing increases in the cost of accessing capital, among others.
Yusuf said: “Knowing the disposition of the Central Bank of Nigeria, given the fact that the bank has repeatedly affirmed its commitment to tame inflation, there is a very high probability that the MPC is likely to hike interest rates, although it may be marginal.”
“My wish is that the Central Bank should put a hold on interest rate hikes for now. I believe that monetary policy instruments have been practically over-stretched in this quest to tame inflation.”
By: Babajide Okeowo
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.
SPECIAL REPORT: In Sokoto, classrooms overtaken by goats, reptiles, as insecurity, lack of teachers, govt inaction push children out of school
SHEHU MUHAMMAD SHEHU reports on how insecurity, government inaction and lack of qualified teachers has significantly forced up the number...
INVESTIGATION: Abia residents in pains, as contractor abandons erosion control project after collecting N185m
Fresh from fashion school in 2022, Onuka Kalu planned to convert one of his father’s two shops, where he formerly...
Trump halts $50m Gaza aid, cites ‘condoms in Gaza’ claim
In a sweeping move to reassess U.S. foreign aid spending, President Donald Trump has frozen a $50 million assistance package...
INVESTIGATION: In Zamfara, forgotten Health Center throws community into health crisis
In the late evening of Friday, September 14, 2024, shortly after the Maghrib prayer, Bashir Muhammad, a 34-year-old father of...
INVESTIGATION: Insufficient teachers, learning materials worsen education access in Kwara communities
Qudus, a Junior Secondary School (JSS 2) pupil, would sit the Basic Education Certificate Examination (BECE) in a year to...