Pause interest rate hike – Financial experts tell CBN ahead of MPC meeting

Financial experts and analysts have told the Central Bank of Nigeria Monetary Policy Committee to pause interest rate hikes ahead of its Monday to Tuesday 297th meeting.

Prof Uche Uwaleke, Director at the Institute of Capital Market Studies, Nasarawa State University, Keffi and Prof Anthony Kila, a political economist, disclosed this in a separate interview with NAN on Saturday.

Uwaleke said that given the country’s inflation which had moderated for two consecutive months to 32.15 percent, the MPC took a complete break from the interest rate hike which stood 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 said.

Recall that the CBN fixed Monday and Tuesday for its 297th MPC meeting.