Opeyemi Agbaje calls for Lower Interest Rate as Economic Positives Become Stable

Proshare

Thursday, March 23, 2017 10:00pm / Proshare  

Nigeria’s foremost economy and policy expert, Mr. Opeyemi Agbaje during Vetiva-Proshare’s tweet meet analyzing CBN MPC’s decision advocated for a review of rates as economic positives become stable. 

The Chief Executive Officer, RTC Advisory hosted by Boason Omofaye Nigeria’s renowned business journalist stated that the economy is just beginning to show good signs with Forex reserves growing, increased FX supply, declining Year-on-Year inflation & peace prospects in Niger-Delta. According to him, the MPC took the right decision to hold rates, though he expects that it will consider lowering interest rates when the economy experiences increased stability.  

Speaking further, he explained that the MPC’s position shows that it is concern about inflation especially based on rising month-on-month inflation, exchange rates and sticky downward interest rates, adding that the MPC was not persuaded by growth and consumption arguments for loosening monetary policy.  

On the Economic Reform and Governance Project (EGRP), Mr. Agbaje expressed delight about the plan’s goals towards growth, inclusion and competitiveness. He thus advised that more emphasis should be made on execution. He further mentioned that the current FX supplies are not sustainable without policy reforms and execution to improve FDI, portfolio flows & confidence.  

To ensure coherence in the long term strategic variance between fiscal stimulus & monetary tightening, Mr. Agbaje stated the best contribution fiscal authorities can make to exchange rate stability and economic recovery is to implement ERGP strictly.   



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