Economy and Politics: Why the CBN MPC will take A Dovish Approach - Biodun Adedipe
This edition of the Economy and Politics features Dr. Biodun Adedipe, Chief Consultant, BAA Consult, as he speaks on the "Expectations from the 283rd CBN MPC Meeting", which begins today in Abuja. The economist urged the MPC members to focus on growth rather than being fixated on inflation.
In the last eight (8) months, inflation witnessed a downward trend before rising to 15.63% in December 2021. He said the inflationary pressures would persist because 2022 is a pre-election year, and this would involve spending money on political campaigns, resulting in a rise in domestic liquidity.
He believed that CBN MPC would take a dovish approach to policy and retain interest rate and other macroeconomic parameters in its first meeting, including cash reserve ratio, liquidity ratio, and the asymmetric exchange rate corridor.
Speaking on global economic developments as it affects Nigeria, he said the normalization of interest rates in developed economies would not affect the activities of portfolio investors in Nigeria.