Pause interest rate hike – CPPE tells CBN ahead of MPC decision on Tuesday

The Centre for the Promotion of Private Enterprise, CPPE, has asked the Central Bank of Nigeria Monetary Policy Committee to halt further interest rate hikes.

CPPE executive director, Dr Muda Yusuf disclosed this in an interview with DAILY POST on Monday.

His comment comes ahead of the outcome of the MPC decision on Tuesday after the end of its 297th meeting.

Speaking on the reason MPC should pause further hike in the country’s interest rate which stood at 26.75 percent in July, Yusuf said that another round of hike will do more harm to investors.

According to him, a decision to hold rate hikes was necessary, especially as Nigeria recorded two consecutive inflation drops in July and August at 33.40 percent and 32.15 percent, although the prices of goods had remained high.

“We expect a pause in interest rate hike. At least inflation is dropping though prices of things in the market are yet to drop.

“We don’t expect CBN to further hike interest rates. If they do that, they will be doing more harm to investors in the country.

“Those who want to borrow money or who have already borrowed money, are the people who will suffer from a further rate hike.

“We expect to put a hold on interest rate hike so that we can see how far the fiscal policy measures can go in reducing inflation”, he told DAILY POST.

The CBN MPC is expected to announce its decision on interest rate hike on Tuesday.

In the past 12 months, the MPC has raised the country’s interest rates four times to tackle inflation.