The Central Bank of Nigeria (CBN) has announced its 296th Monetary Policy Meeting (MPC), scheduled for next Monday and Tuesday, to address the nation’s escalating inflation and economic hardship.
This meeting marks the fourth under the leadership of CBN Governor Olayemi Cardoso, appointed in September 2023.
The CBN faces mounting pressure to address the rising inflation, which has led to a significant increase in the country’s interest rate from 18.75% in May 2023 to 26.25% in May 2024. Despite calls from financial stakeholders to pause interest rate hikes, the CBN maintains its tightening measures to control inflation.
Muda Yusuf, director-general of the Centre for the Promotion of Private Enterprise (CPPE), urges the MPC to reconsider its stance due to the persistent inflationary pressures. “The persistent inflationary pressures in the Nigerian economy remained a major cause for concern because of the implications on purchasing power and operating costs for businesses.”
The latest National Bureau of Statistics inflation figures show a 19th consecutive rise in headline and food inflation, reaching 34.19% and 40.87% respectively in June 2024. This surge in inflation puts increased pressure on the CBN to take decisive action.
Stakeholders and analysts will closely watch the MPC meeting for signs of a shift in the CBN’s monetary policy stance. The CBN’s decisions will have significant implications for businesses, consumers, and the overall economic outlook, amidst the country’s economic challenges.
