Bismarck Rewane, the Chief Executive Officer of the Financial Derivatives Company, has indicated that the Central Bank Monetary Policy Committee (MPC) is compelled to tighten interest rates in response to surging inflation and economic challenges.
In a recent interview on Channels Television, Rewane suggested that the MPC is likely to implement an increase of at least 200 basis points in the country’s interest rate.
“We have no choice but to tighten monetary policy. They must tighten and tighten well.
“I will suggest that nothing less than 200 basis points will send a signal to the market.
“We have seen the primary option and bond option in the treasury bill,” he said.
The upcoming meeting of the MPC, scheduled for February 26 and 27 and led by CBN Governor Olayemi Cardoso, is expected to address the current economic conditions.
The previous MPC gathering occurred in July 2023 under the former Acting CBN governor, Mr. Folashodun Shonubi, during which the country’s interest rate was set at 18.75 per cent.
Nigeria’s inflation, as reported by the National Bureau of Statistics, surged to 29.90 per cent in January 2024, prompting concerns and potential adjustments in monetary policy.
