The retention of Monetary Policy Rate at 14 per cent will increase inflation rate and the banking sector non-performing loans (NPLs) profile,’’ some financial experts said on Wednesday. They told the News Agency of Nigeria in Lagos that the retention of MPR was not in the best interest of the country, saying it would escalate the inflation rate.
The experts spoke on the outcome of the Monetary Policy Committee meeting held on Nov. 21 and 22 in Abuja. MPC at the meeting retained the interest rate at 14 per cent and also retained the Cash Reserve Requirement at 22.5 per cent.
The liquidity ratio was also retained at 30 per cent. In his remarks, Dr Glenn Prince-Abbi, the Executive Consultant/Chief Executive Officer, Espera Global Corporation, said that the decision to retain all the key indicators was worrisome. Read more