The Monetary Policy Committee (MPC) retains interest rate at 14%. This was made known to news men today in Abuja by the chairman of the committee and also the Central Bank of Nigeria Governor, Godwin Emefele. According to the chairman, 8 out of the 12 members of the committee attended the July meeting of the committee. At the end of the meeting, 6 voted that the interest rate should be kept at 14% while 2 wanted an ease.
MPC is a monetary committee that formulates monetary policies in Nigeria. The committee is made up of 12 members who sit every two months to deliberate on monetary issues from global to national perspectives.
You may need to know that MPC has maintained the interest rate at 14% since the country’s economy slide into recession. This stand of the committee has been criticised by some Nigerians. Some of them are of the opinion that to stimulate the economy, interest rate should be kept at less than 14% to make access to credit easy for business owners.
But this insinuation was countered by the MPC, Godwin Emefele, while feeding questions from news men. According to him, bring down the interest rate will jeopardize all the efforts that have been made towards economic recovery. He said that since the inflation rate is at 16.1% which is above the threshold of minimum 10% and 12% maximum, it will be unwise to do that. He also stated that bringing down will scare investors.
He also talked about the reason the Central Bank and the National Communication Commission intervened in the intending crisis in Etisalat Nigeria. According him, the intervention was intended to protect the interest of over 20 million subscribers the company has and over 4,000 workers of the company. He said that their intervention is yielding a positive result as the company still made 16 billion in June.
by ikenna ojeme.