The Centre for the Promotion of Private Enterprise (CPPE) has warned the Central Bank of Nigeria (CBN) and its Monetary Policy Committee of the dangers of further interest rate hikes on Nigerians.
While the CBN’s Monetary Policy Committee has yet to decide on a possible interest rate hike, CPPE Executive Director, Dr. Muda Yusuf, has urged the apex bank to refrain from raising the country’s interest rates.
During an interview monitored by Investors King on Monday, Yusuf revealed that any further increase in interest rates would do more harm than good for investors.
Also, the CPPE director noted that debtors in the country would face significant consequences if interest rates were to increase further.
The outcome of the MPC’s decision will be known on Tuesday, following the conclusion of its 297th meeting.
However, Yusuf remains optimistic, especially since inflation is gradually declining, although the prices of goods have yet to fall.
According to him, “We expect a pause in interest rate hikes. At least inflation is dropping, although prices in the market are still high.
“We don’t expect the CBN to raise interest rates further. If they do, it will cause more harm to investors in the country.
“Those who want to borrow money or have already borrowed money will be the ones to suffer from another rate hike.
“We expect a pause in interest rate hikes so that we can assess how far fiscal policy measures can go in reducing inflation,” Yusuf added.
