Dr Samuel Nzekwe, a former President of the Association of National Accountants of Nigeria (ANAN), has anticipated further tightening of key monetary policy rates by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) at its next meeting.
Nzekwe made this prediction on Friday in Ota, while speaking with the News Agency of Nigeria (NAN) about his expectations for the two-day meeting to be held from March 25 to March 26
NAN reports that the MPC is set to convene its 294th meeting on March 25 to deliberate on key monetary policy instruments.
The CBN Governor, Yemi Cardoso, who chaired the last MPC meeting, said that the asymmetric corridor around the MPR was adjusted to +100 /- 700 basis points from +100/ -300 basis points.
“The Cash Reserve Ratio (CRR) was increased from 32.5 per cent to 45 per cent, while the Liquidity Ratio was retained at 30 per cent.
“The committee decisions is centred around the current inflationary and exchange rate pressures, projected inflation, and rising inflation expectations.
“Members are concerned about the persistent rise in the level of inflation and emphasised the committee’s commitment to reverse the trend as the balance of risk leans towards rising inflation.
Nzekwe said that it was likely that the MPC would raise the Monetary Policy Rate (MPR) and Cash Reserve Ratio marginally to reduce the amount of money available for banks.
“The motive of the CBN is to moderate the economy and curb the nation’s inflationary trend. Additionally, they are working towards withdrawing excessive money from circulation,” he added.
The former ANAN president appealed to the federal government to make concerted efforts toward providing critical infrastructure that would encourage investors to borrow money from the banking system.(NAN)
By Ige Adekunle
 of the Central Bank of Nigeria (CBN){kind=link}