Prof. Evans Osabuohien, a former Head of Economics Department, Covenant University, Ota, has commended the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) for retaining all the key monetary policy instruments at its last meeting.
Osabuohien gave the commendation on Thursday, in an interview with our reporter in Ota, Ogun.
It was reported that the CBN Governor, Mr Godwin Emefiele, on Tuesday in Abuja, after the MPC meeting, said that the committee voted to retain Monetary Policy Rate (MPR) at 11.5 per cent, Cash Reserve Ratio at 27.5 per cent and Liquidity Ratio at 30 per cent.
The committee noted that inflation continued to be driven by supply-side disruptions arising from the COVID-19 pandemic and other legacy factors.
Key amongst these are the security challenges in parts of the country, the increase in food prices and the recent hike in the pump price of petrol and electricity tariff.
Osabuohien applauded the MPC decision to retain all the key monetary policy instruments to reduce pressure on the economy.
“The retention of all the monetary policy instruments was anticipated and expected as the economy is still trying to recover and find its footing due to the COVID 19 pandemic and the #ENDSAR protests.
“The MPC needs to watch the signals before adjusting any parameters as the economy is already in recession,” he said.
The economist, however, said that the monetary policy might not be sufficient enough to address the current challenges in the country.
He stressed the need for coordination between the fiscal and monetary policies in order to achieve sustainable economic growth in the country.