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MPC: Expert urges CBN to curb inflation rates

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As Central Bank of Nigeria (CBN) opens its Monetary Policy Committee (MPC) meeting on Monday, a financial expert, Mr Okechukwu Unegbu, has advised the committee to address rising inflationary rates.

Unegbu, who gave the advice in an interview with our reporter on Monday in Abuja, noted that other relevant rates remained stable and could be maintained.

At the last MPC meeting held in November, 2020, key policy decisions reached include the benchmark interest rate which was held at 11 per cent.

Others include Cash Reserve Ratio at 27.50 per cent and Liquidity Ratio retained at 30.00 per cent.

“I guess that the MPC will leave the rates as they are because there appears to be some stability. The only issue is that inflation is going up, and it means that our currency is becoming weaker. What to do is to reduce the quantum of money in circulation,’’ he said.

He advised that the reserve requirement and liquidity ratio be adjusted to stabilise the economy.

It was reported that Monday’s MPC meeting will be the first in 2021.

The MPC is the highest policy making committee of the CBN with the mandate to: Review economic and financial conditions in the economy and Determine appropriate stance of policy in the short to medium term

Other mandates are to Review regularly, the CBN monetary policy framework and adopt changes when necessary, communicate monetary/financial policy decisions effectively to the public and ensure the credibility of the model of transmission mechanism of monetary policy.

Kadiri Abdulrahman

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective.A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour.The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.

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