By Akinsuroju Olubunmi
Moghalu supports Cardoso on CBN’s interest rate benchmark.
Former Deputy Governor of the Central Bank of Nigeria, Kingsley Moghalu, has endorsed the decision of the CBN to increase the Monetary Policy Rate (MPR) to 22.75 percent from 18.75 percent, a rise of 400 basis points.
Moghalu expressed his approval of the move via a statement on his Twitter account, describing it as a necessary step to combat inflation over the next 12-18 months. He likened the current situation to actions taken a decade ago to reduce inflation from 14% to 8%.
Acknowledging the potential impact on businesses, Moghalu emphasized the importance of prioritizing price stability to prevent further economic instability akin to situations in Zimbabwe or Venezuela.
The announcement of the increased benchmark interest rate was made by Cardoso at the conclusion of the Monetary Policy Committee meeting held in Abuja. The decision comes after a series of gradual increases in the MPR over four consecutive meetings in 2023.
Despite these efforts, other key indices such as the Cash Reserves Ratio (CRR) and Liquidity Ratio remained unchanged, with the CRR at 32.5 percent and the Liquidity Ratio at 30.0 percent.
CBN’s Interest Rate, Moghalu’s Support