Pol Eco Analytics, a Nigerian based independent think tank and research organization has called on the Central Bank of Nigeria ( CBN) to rethink its monetary policy over the years, favour increasing interest rate as a measure to fight inflation in the economy.
While Pol Eco Analytics acknowledged the fact that interest rate was one out of other monetary instruments available to cushion inflation. However, this monetary instruments has now become the only weapon CBN deployed in the name of fighting inflation.
Pol Eco Analytics said”For the record, since middle of last year 2022.
“The CBN in it usual characteristics after its ritual Monetary Policy Committee (MPC) meeting that take place every quarter, considered hiking interest rate.
“For instance, between January to July the Apex bank as consistent raised the rate,16.50%,17.50% 18.50% and 18.75.
“Sadly, this monetary stance of the CBN in it best was only good on paper fighting inflation.
“Meanwhile the reality before Nigeria is soaring inflation even before the removal of fuel subsidy.
“For us an organization and a stakeholder in the Nigeria economy and development project.
“We believed the CBN mean well for Nigerians, but it policy on the other hand is contradictory to better the welfare of the people.
“Particularly in closing the gap in our micro and macroeconomic situation.
“Either to further boost employment, alleviate poverty and re- engineer investment.
Pol Eco Analytics in a release signed by it Senior Reseacher,Adefolarin A. Olamilekan emphasized the need for the reserved bank of the nation to see reasons to retooled its monetary policy. As a measure to improve fiscal and trade policy. That would give opportunity for sound credit not to hinder growth through credit facilities.
Pol Eco Analytics therefore called on the current manager of the CBN, to think locally on the current prevailing situation, and not to swayed by what developed nations reserve banks are doing.
In the same vein, Pol Eco Analytics urged the Acting CBN governor to demonstrate transparency in deals, appropriately
