Tackling Inflation In Nigeria

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) recently released the communique of its 305th meeting and third sitting this year. The committee unanimously voted to retain the monetary policy rate (MPR), which benchmarks interest rates in the country, at 26.5 percent.
Though interest rates do not directly appear in the consumer price index (CPI) basket, but they influence inflation severally as it drives inflation through demand, affects inflation through the foreign exchange rates and shape inflation expectations.
The apprehension which trailed the MPC stance was slightly doused by the CBN Governor, Olayemi Cardoso when he noted in the communique that “altho...