Expert lauds MPC for raising MPR to 17.5 %

January 24, 2023
45 Views

 

A financial expert, Dr Samuel Nzekwe, has commended the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) for raising the Monetary Policy Rate from 16.5 per cent to 17.5 per cent.

Nzekwe, also a former President, Association of National Accountants of Nigeria (ANAN), gave the commendation in an interview with the News Agency of Nigeria (NAN), while reacting to the outcome of the MPC Meeting, on Tuesday in Ota, Ogun.

National Daily reports that the CBN Governor, Mr Godwin Emefiele, on Tuesday in Abuja, after the two days apex bank’s MPC Meeting, announced the increased of MPR from 16.5 per cent to 17.5 per cent.

The others key instruments were retained at Cash Reserves Ratio (CRR) at 32.5 per cent and Liquidity Ratio at 30 per cent, respectively.

This is the fifth time the CBN would increase the interest rate in spite of the advice from manufacturers and some key stakeholders.

The MPR is the baseline interest rate in an economy; every other interest rate used within that economy is built on it.

Nzekwe noted that the MPC’s decision to increase the MPR was a welcome development in order to tightening funds circulation in the country.

The former ANAN president said that this development would make the cost of funds to be higher from banking system and discourage people from borrowing.

“The apex bank is working toward mopping up a lot of money and curb inflationary trend in the country.

ALSO READ: Emefiele apologized, as CBN refused to extend old Naira notes deposit

“The weekly cash withdrawal limit placed on people by CBN and increasing the MPR were all stems by the regulation to ensure that the nation’s inflation rate is drastically reduced,” he said.

Nzekwe explained that Nigeria was having a higher inflation rate due to the crisis in Ukraine, Russia, Europe and all over America.

Advertisement

He noted that the country imported its raw materials and others goods from these countries, like Europe and America, adding that hyper inflation in these countries was likely to impact on Nigeria.

Nzekwe said that the decision of the MPC would help to curb the tendency of this higher inflation on the country.

You may be interested

It Is Unfortunate You Eventually Died — Soludo’s Wife Reacts to Actor Amaechi Muonagor’s Death, Recounts Their Encounter
News
News

It Is Unfortunate You Eventually Died — Soludo’s Wife Reacts to Actor Amaechi Muonagor’s Death, Recounts Their Encounter

Webby - March 25, 2024

By Izunna Okafor, Awka The wife of Anambra State Governor, Mrs. Nonye Soludo has mourned the passing of the legendary…

137 Rescued School Children Arrive Kaduna Govt House (Photos)
News
1 views
News
1 views

137 Rescued School Children Arrive Kaduna Govt House (Photos)

Webby - March 25, 2024

 The school students who were rescued by troops on Sunday, after they were kidnapped from Kuriga, Chikun Local Government Area,…

I Won Hands Down – Bobrisky Speaks On Best Dressed Female Award
News
1 views
News
1 views

I Won Hands Down – Bobrisky Speaks On Best Dressed Female Award

Webby - March 25, 2024

Controversial Nigerian crossdresser Idris Okuneye, aka Bobrisky, has taken to social media to boast about his recent award. Recall that…

Leave a Comment

Your email address will not be published.