A popular economist and former President and Chairman of the Council of Chartered Institute of Bankers, Prof Segun Ajibola, said the Central Bank of Nigeria’s Monetary Policy Committee’s decision to hike interest rates would not tame rising inflation.
Ajibola disclosed this on Wednesday in an Interview with DAILY POST.
Speaking on the heels of the recent hike in Monetary Policy Rates by CBN to 18.75 per cent, the renowned economist noted that interest rate hikes had hardly impacted the sector except for banks that borrow through the apex banks’ discount window.
He maintained that Nigeria’s inflation rate, which stood at 22.79 per cent in June, comes mainly from cost-push and imported inflation.
Ajibola said the best way to tame inflation in Nigeria is to address the rising costs of production components.
He stated that the government must tackle over-reliance on importation to strengthen the Naira.
“The MPR (Nigeria’s acronym for a discount rate determined by banking…