Businesses expect CBN to hold rates as MPC meets today

Central Bank of Nigeria. Photo: CBN

Organised Private Sector leaders and economists have projected that the Central Bank of Nigeria’s Monetary Policy Committee will most likely retain the Monetary Policy Rate at 26.5 per cent when it meets on Monday and Tuesday, citing heightened geopolitical tensions and their potential impact on inflation.

The stakeholders noted that Nigerian businesses would welcome a rate cut to ease borrowing costs and support investment, particularly in the manufacturing sector, which has struggled under high interest rates.

Their position comes despite a recent CBN Inflation Expectations Survey showing that 61.1 per cent of Nigerians want interest rates reduced ahead of the MPC meeting.

In telephone interviews with The PUNCH, economists and business leaders, including the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said prevailing global uncertainties, particularly the renewed conflict involving the United States and Iran, made it too early for the apex bank to begin further monetary easing.