Economic expert Dr. Chijioke Ekechukwu has advised against further increases to Nigeria’s Monetary Policy Rate (MPR) ahead of the Central Bank of Nigeria’s (CBN) 298th Monetary Policy Committee (MPC) meeting. Comparing the situation to an illness requiring multiple treatments, he argued that relying solely on monetary tightening would not address inflation effectively, as other factors play a more significant role. Dr. Ekechukwu warned that raising the MPR further would strain the financial system, escalate borrowing costs, and burden struggling consumers in a challenging economy.
Dr. Ekechukwu’s stance comes in light of consecutive rate hikes under CBN Governor Yemi Cardoso’s tenure, aimed at tackling high inflation. Since February, the MPC has aggressively raised the MPR by 850 basis points, moving from 18.75% to 27.25% in September. This tightening strategy, while addressing core and food inflation, has drawn criticism for its impact on financial accessibility and consumer welfare.
The expert emphasized the need for a balanced approach to combat inflation, suggesting that solely increasing interest rates without addressing other inflationary drivers is unsustainable. He urged the MPC to consider alternative strategies that mitigate inflation without further stifling economic growth and exacerbating financial hardships for Nigerians.
