The Central Bank of Nigeria (CBN), on Tuesday, raised the Monetary Policy Rate (MPR), which measures interest rates by 50 basis points, from 26.25% to 26.75% amid soaring inflation and skyrocketing food prices.
The Governor of the apex bank, Olayemi Cardoso, announced this after the apex bank’s 296th Monetary Policy Committee (MPC) meeting in Abuja.
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These guys are crazy and bereft of theoretical ideas on monetary policy. Who can tell them that Nigerian inflation is not caused by increase in money supply, but structural bottlenecks and rigidities. They should stop increasing monetary policy rate (MPR), it’s stiffling and crowding out investment. The major cause of inflation in Nigeria now is shortage in aggregate supply. That’s why it is grosslly wrong to bring a non-economist to head the apex bank.