There are high expectations of retaining rates by analysts when the first Monetary Policy Meeting (MPC) in 2017 by the Central Bank of Nigeria (CBN) ends tomorrow. The meeting which is the highest organ of monetary policy decisions is expected to come out with the policy direction in the sector for the first time this year.
Since July, 2016, MPC failed to take any major policy change. At the July meeting, it took a major decision to increase the Monetary Policy Rate (MPR) by 200 basis points from 12 to 14 percent. Former MPC member and Director General of the West African Institute for Financial and Economic Management, Professor, Akpan H. Ekpo, said the CBN had better retain the rates at the moment.
Because whatever decisions taken may have very minimal impact at the moment, he said at the period of recession like now, monetary policies have less impact. The only thing needed to reflate the economy are drastic fiscal measures.