The Central Bank of Nigeria (CBN) has announced its upcoming Monetary Policy Meeting (MPC) to address the country’s escalating inflation and economic hardships.
Scheduled for next Monday and Tuesday, this will be the 296th MPC meeting and the fourth under the leadership of CBN Governor Olayemi Cardoso, who assumed office in September 2023.
Scheduled for next Monday and Tuesday, this will be the 296th MPC meeting and the fourth under the leadership of CBN Governor Olayemi Cardoso, who assumed office in September 2023.
The CBN has been under intense pressure to tackle the rising inflation, with the country’s interest rate soaring to 26.25% in May, up from 18.75% in May 2023. Despite calls from financial sector stakeholders to halt interest rate hikes, the CBN has maintained its tightening measures.
The Centre for the Promotion of Private Enterprise (CPPE) has previously advised the CBN against further interest rate increases, emphasizing the need for businesses to recover from past rate hikes. However, the CBN has stood firm, citing the necessity to control inflation.
CPPE Director-General Muda Yusuf urged the MPC to pause its tightening measures due to recent inflation rate increases. “The persistent inflationary pressures in the Nigerian economy remain a major cause for concern because of the implications on purchasing power and operating costs for businesses,” Yusuf stated.
The latest inflation figures from the National Bureau of Statistics show that headline and food inflation rose for the 19th consecutive time to 34.19% and 40.87%, respectively, in June 2024. This has increased pressure on the CBN to take decisive action to alleviate the economic hardship faced by Nigerians.
The upcoming MPC meeting is expected to be closely watched by stakeholders and analysts, who will be looking for signs of a shift in the CBN’s monetary policy stance. With the country’s economy facing significant challenges, the CBN’s decisions will have far-reaching implications for businesses, consumers, and the overall economic outlook.
