MPC meeting: Experts advocate for pause in interest rate hike in Nigeria 

The call comes ahead of the meeting of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) scheduled to be held on Monday and Tuesday to review key monetary policies, including the interest rate, which has been the subject of much debate.

Speaking with the News Agency of Nigeria (NAN) on Saturday, a financial economist and Director at the Institute of Capital Market Studies, Nasarawa State University Keffi, Professor Uche Uwaleke, urged the MPC to refrain from increasing interest rates, citing the need to stabilize the economy.

Uwaleke emphasized that the recent moderation in inflation, recorded in July and August, provides a compelling case for halting further rate hikes.

Uwaleke also pointed out that major global central banks like the U.S. Federal Reserve have begun pausing or cutting rates, with institutions like the Bank of England and the European Central Bank expected to follow suit.

He encouraged the MPC to consider alternative, unorthodox measures to control money supply rather than relying solely on the Monetary Policy Rate (MPR).

“Given that headline inflation has moderated in recent months, my advice to the MPC is to completely pause rate hikes. 

“The adverse impact of high interest rates on economic growth and employment is becoming evident, especially in an economy grappling with stagflation,” he said.

Echoing Uwaleke’s sentiments, Professor Anthony Kila, a political economist and public affairs analyst, stressed that the MPC’s decisions must be more directly impactful on the everyday lives of Nigerian citizens.

“For the MPC to truly matter, the CBN must review its approach to measuring inflation and economic growth to better reflect Nigerians’ realities,” Kila said.

He further advocated for policies that enhance consumer finance and enable fiscal policies to take a more central role in economic management.

In recent months, the CBN’s MPC has maintained a tightening stance on monetary policy, raising the MPR to combat rising inflation.