Nigerians are conflicted at the moment not knowing what to expect from the first meeting of the Monetary Policy Committee (MPC) of the Central Bank.
You see, the MPC has been increasing the interest rate in the last few years believing that it will help to tame inflation.
The result is that businesses are getting suffocated while the economy is not improving.
Olayemi Cardoso, the star boy of the Central Bank will be having his first MPC meeting and truthfully, Nigerians are scared.
Since assuming office as the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, will be participating in the Monetary Policy Committee for the first time.
Looking at how things currently are in the country, Nigerians can not but hope that the outcome of the MPC meeting holding between February 26 & 27, 2024, will be positive.
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Indeed, a negative outcome will not be good for businesses, the citizens and the economy.
Exchange Rate Is Too High
The fluctuations of the exchange rate of the naira to the dollar makes it impossible to plan your expenditure as a business owner.
As though that is not bad enough, the official exchange rate of the naira against the dollar is too high at ₦‎1488.839.
This information can be verified on the CBN website.
Also, the demand for dollar in Nigeria is too high and this weakens the local currency. We hope the MPC will find a lasting solution to this problem.
Monetary Policy Rate
They say it is only a mad person that keeps doing the same thing but expects a different result.
So, there are many motions the MPC members can move, but one that must not be thought of is raising the Monetary Policy Rate.
Nigerians are silently praying that the MPC will not raise the MPR, as this will only signal insensitivity on the part of the MPC members.
The MPR was last raised at the July 2023, MPC meeting from 18.5% to 18.75%
Businesses are struggling to exist, and considering the implication of such interest rate hikes on loans taken from banks.
It will be good for the CBN committee to start thinking of other possible ways to tame the country’s inflation rate.
The current 28.92% inflation rate is the all time highest, ever witnessed in Nigeria.
New Members Of MPC
The MPC now has fresh heads who are expected to inject new practicable ideas that are result oriented into the MPC.
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These new members, selected because of their wealth of experience, should help Cardoso’s tenure make Nigeria better with laudable ideas.
So the question that this MPC meeting will answer for the people remains.Will they smile or weep at the end of February 27, MPC meeting? Time shall tell.
