The Chief Executive Officer of the Financial Derivatives Company, Bismarck Rewane, says the Central Bank Monetary Policy Committee will have no option but to tighten interest rates amid soaring inflation and economic hardship.
Rewane disclosed this in a recent interview on Channels Television.
He stated that the MPC would likely increase the country’s interest rate by nothing less than 200 basis points.
“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.
OsunDailyNG reports that the CBN governor, Olayemi Cardoso and members of the MPC would hold their first meeting scheduled for February 26 and 27.
The last MPC meeting was held in July 2023 under the former Acting CBN governor, Mr Folashodun Shonubi, where the country’s interest rate was pegged at 18.75 per cent.
The National Bureau of Statistics says Nigeria’s inflation soared 29.90 per cent in January 2024.
