By Seun Ibiyemi
The Chartered Institute of Bankers of Nigeria (CIBN) has projected that the Central Bank of Nigeria (CBN) will retain the Monetary Policy Rate (MPR) at 26.5 per cent as the Monetary Policy Committee (MPC) begins its 306th meeting in Abuja on Monday.
President and Chairman of the Council of CIBN, Dr Dele Alabi, disclosed this in an interview with journalists in Lagos, attributing the projection to the apex bank’s inflation-targeting framework and recent economic indicators.
According to Alabi, inflation has neither risen sharply nor moderated enough in recent months to justify a reduction in the benchmark interest rate.
“I expect the MPC to keep the interest rate constant and monitor developments over the next couple of months before considering any adjustment,” he said.
He explained that maintaining the current policy stance would give the Central Bank room to assess emerging inflationary trends and broader economic conditions before making further monetary policy decisions.
The CBN retained the benchmark interest rate at 26.5 per cent at its previous meeting as part of efforts to curb inflation and sustain macroeconomic stability.
Also speaking, economist and former MPC member, Prof. Akpan Ekpo, urged the committee to maintain the existing monetary policy settings, citing prevailing uncertainties in the global economy.
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Ekpo noted that geopolitical tensions, particularly involving the United States and Iran, could trigger higher crude oil prices and worsen inflationary pressures.
He, however, argued that such shocks were likely to be temporary and should not necessitate an increase in interest rates.
The former MPC member advised policymakers to closely monitor both domestic and international economic developments while maintaining the current policy rate.
He also called on the Federal Government to channel more investments into productive sectors of the economy to stimulate growth and strengthen economic stability.
The MPC meeting comes amid expectations from investors and analysts that the apex bank will maintain its cautious stance as it seeks to balance inflation control with economic growth.
