Mohammed Shosanya
An economist and Chief Executive Officer,Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, has said that the Central Bank of Nigeria is now moderate in it’s monetary tightening stance following July increase in interest rate .
The Monetary Policy Committee of the apex bank, had Tuesday announced increase in interest rate by 50 basis points.
Yusuf, in a statement, said the development,is perhaps a reflection of some responsiveness to the clamour by stakeholders in the real economy for the apex bank to effect a deceleration in its rate hikes.
He added:”Although my preference was for a pause on the rate increases because of the enormity of the headwinds that businesses are grappling with. But the marginal increase marks a softening of the tightening stance. It is tolerable’.
He emphasized the need for the country to now accelerate the implementation of the fiscal policy measures to tackle inflation.
Already the economic Stabilisation plan contains a number of laudable fiscal policy measures that could reduce production costs in the economy, he noted
He said:”It is also important and urgent for the government to adopt and quickly implement the recommendation of the Presidential Committee on Fiscal and Tax Reforms on the Customs duty exchange rate which proposed N800/dollar. The adoption of this recommendation would have a considerable impact on cost of goods and services in the country”.
