Kingsley Moghalu, a former Deputy Governor of the Central Bank of Nigeria (CBN), has applauded the recent decision of the CBN’s Monetary Policy Committee (MPC) to raise the Monetary Policy Rate (MPR) by 400 basis points, bringing it to 22.75 percent from the previous 18.75 percent.
Moghalu gave his approval through a statement posted on his Twitter handle on Tuesday.
In his statement, Moghalu said, “Correct move by @cenbank Monetary Policy Committee to dramatically hike the Monetary Policy Rate by 400 basis points to 22.5%. The situation calls for nothing less if we are to check inflation over 12-18 months. We did the same a decade ago to bring inflation from 14% to 8%.”
Acknowledging the impact on businesses, Moghalu said it is necessary to prioritise price stability over economic growth in the current situation.
He added, “It will hit businesses hard, but inflation is hitting harder. We must slay the inflation dragon lest it consume our economy, and we head to Zimbabwe/Venezuela. The money supply MUST be reduced. Price stability must take priority before economic growth in the current situation.”
News About Nigeria reported that during the Monetary Policy Committee (MPC) meeting on Tuesday in Abuja, Olayemi Cardoso said that he and his team are not responsible for the current economic challenges in the country.
This statement comes amid rising inflation, a forex crisis, economic hardship, and protests caused by the removal of the petrol subsidy.
Addressing questions about the role of the CBN in the economic difficulties faced by Nigerians, Cardoso responded, “I laugh at that question, but it’s not a laughing matter. It is very important for Nigerians to understand that the Central Bank Governor — I and my team — are not responsible for the woes that we have today; we are part of the solution.”
