The Nigeria Employers Consultative Association (NECA) has warned the Federal Government that the recent action of the Central Bank of Nigeria (CBN) to raise the Monetary Policy Rate (MPR) by 25 basis points to 18.75%, will create a crisis and further impede the growth of businesses in the country.
The Director-General of NECA, Mr Adewale-Smatt Oyerinde, in an interview with Daily Sun Workforce, said the decision of the CBN’s Monetary Policy Committee (MPC) could be chaotic to the growth trajectory of the country as well.
Rather, he advised that the Apex Bank should collaborate with fiscal authorities in addressing the fundamentals behind the persistent increase in consumer prices, which has defied the policy measures put in place by previous rate hikes.
“Tightening monetary policy stance by raising the anchor rate has proved ineffective, as inflation has been rising steadily and could climb as high as 25 percent before year-end,” he cautioned.
Oyerinde said the focus of CBN should be on tackling the structural drivers of inflation, which is mostly the supply side.
