• Rate hike lazy approach to fixing crisis, experts insist
• Inventory may continue to pile up
• Yusuf, Akpan, others kick against MPR hike fixation
Raising the monetary policy rate by yet another 150 basis points (bps) suggests the Central Bank of Nigeria (CBN)’s appetite for short-term foreign exchange (FX) inflow is far from abating.
The announcement by the CBN governor, Yemi Cardoso, at the end of the Monetary Policy Committee (MPC) meeting, yesterday, is being interpreted as an indication of continued desperation for hot money for a quick fix for the FX crisis.
Economists warned that the preference comes at a huge cost as the authority continues to starve the real sector of much-needed funding and stifle local investments.
