The Centre for the Promotion of Private Enterprise (CPPE) has called on the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) to pause further interest rate hikes. Dr. Muda Yusuf, the Executive Director of CPPE, shared this during an interview with the press on Monday, ahead of the MPC’s decision following its 297th meeting.
Nigeria’s current interest rate stands at 26.75% as of July, after multiple hikes aimed at curbing inflation. However, Dr. Yusuf expressed concern that another hike would negatively impact investors and businesses. He emphasized that maintaining the current rate is essential, especially after Nigeria recorded two consecutive drops in inflation in July (33.40%) and August (32.15%).
Yusuf highlighted the burden that increased interest rates place on borrowers, explaining that “those who want to borrow money or who have already borrowed money, are the people who will suffer from a further rate hike.”
He urged the CBN to hold off on further rate hikes and allow fiscal policy measures to play their role in controlling inflation. The CBN’s MPC decision on whether to adjust the interest rate is expected to be announced on Tuesday, following a year of multiple rate increases aimed at tackling Nigeria’s inflation problem.
