Expert urges CBN to reduce MPR

CBN

CBN

Dr Samuel Nzekwe, finance expert, has urged the Central Bank of Nigeria to reduce the Monetary Policy Rate currently at 13 per cent in order to boost the economy.

Nzekwe, former President, Association of National Accountants of Nigeria (ANAN), told the News Agency of Nigeria (NAN) on Sunday in Ota, Ogun, that the higher MPR had eroded the purchasing power of most Nigerians.

NAN reports that the Monetary Policy Committee of CBN had at its two-day meeting in Abuja on Tuesday retained the MPR at 13 per cent.

According to him, the interest rate charged by the commercial banks was too high, making businesses difficult to do in the country.

“The Federal Government needs to create enabling environment by providing lower interest rate and address critical infrastructure deficiency for industries to thrive’’, the ex-ANAN boss said.

According to him, Nigeria is experiencing cost push inflation, the result of higher cost of production of goods and services.

Nzekwe said devaluation of the nation’s currency was a major factor that affected the high cost of production.

“Goods and services are available but people have no money to buy them because the recession made people to be worse off’’, he said.

He, therefore, advised the CBN to reduce interest rate so that investors could access cheap loans, reduced cost of production and create more employment.

This, he said, would boost the Gross Domestic Product and eradicate poverty level in the country.

In this article:
CBNDr Samuel Nzekwe


1 Comment
  • real

    when you have a central bank focus on the wrong cause of the inflation, you get a central bank that destroying the economy, wasting tax payer money and creating more problem. we have a production cost inflation, and high interest rate is not going to solve it or bring it down. we have a forex liquidity problem, controlling the price would not solve that also, because we are not preventing those investors and Nigerian’s willing to invest in the country. Using the T bill to try to mop up fake excess cash, is destroy the economy that needs cash and it is an expensive way to mop up the money. we can use cash reserve ratio to mop any money, but we don’t need to be mopping up cash now.

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