Economists and informed analysts are divided over the Tuesday Monetary Policy Committee (MPC) meeting presided over by Central Bank governor, Mr. Godwin Emefiele, decision to hike interest rate to 13 per cent, effectively raising MRR by 150 basis points from 11.5 per cent, saying it is not in the best interest of Nigeria as its will impact negatively on the economy that is already reeling from heavy inflation rate.
Emefiele gave reasons for MPC’s decision, which among others, left other key parameters – assymetric corridor of +100/-700 basis points around the MPR and Cash Reserve Ratio (CRR) at 27.5 per cent as well as the liquidity ratio at 30 per cent unchanged. However, experts and informed analysts weighed in with varied positions. They spoke against the backdrop of how CBN decision may affect business, its implications on the economy and business portfolios. Political economist, Aliyu Ilias, said MPC’s decision was informed by the trend in global economy where most developed nations are contending with rising inflation.