The Bank of America has advise that the Monetary Policy Committee of the Central Bank of Nigeria need to increase interest rates by at least 700 basis points before the end of the year to curb inflation.
Speaking with the bank’s sub-Saharan Africa Economist, Tatonga Rusike, he affirms that the hike in commodity was necessary to tackle soaring inflation occasioned by the sudden fuel subsidy removal and unification of foreign exchange.
He reiterated that at the current trend, inflation may quicken to 30 per cent by the end of the year from 22.4 per cent in May, noting that the nation’s apex bank may need to push up the rates.
He warns that if this decision was not taken, foreign investors might exercise caution before investing in the country, which is not good for a growing economy that needs investors.
Meanwhile, CBN, in record-breaking moves has been increasing the country’s interest rates since last yeae noting that the last Monetary Policy Committee meeting held in May 2023, the benchmark interest rate was further pushed forward by 0.5 per cent to 18.50 per cent from 18.00 per cent in March.
Similarly the National Bureau of Statistics attributed the increase in the average prices of goods and services in the month under review to the 24.82 per cent jump in the food inflation rate.
