For the nation’s economy to rebound, the General Secretary, Association of Stockbroking Houses of Nigeria (ASHON), Mr. Akinsola Akeredolu-Ale, has said that government should understand that it does not have any affair in running the economy but to provide policy and security.
According to him, government does not have any business in running business but provide security and social benefits for experts to run the economy.
ASHON General Secretary in a chat with Business247 News Online said, “Government by a way of double digit interest rate still controls the financial market in one hand. As long as Federal Government continued to issue bond at 13 per cent – 14 per cent, they are effectively giving money and collecting the funds back from the public.
“The Monetary Policy Rate (MPR) supposed to regulate economy in such a way that commerce should grow. The day CBN decided to reduce MPR to nine per cent; you will see investors rushing into the capital and money market.
“When the MPR rate is at 13 per cent – 14 per cent, the nation’s capital market will not grow.” he said.
On this, the Central Bank of Nigeria’s 251st Monetary Policy Committee (MPC) meeting commences from today and experts expressed that CBN might introduced new policy to tackle inflation rate and scarcity of foreign exchange.
The National Bureau of Statistics (NBS) in its recent report disclosed that the nation’s inflation rate hits 11-year record high of 16.5 per cent.
CBN at the last MPC meeting had retained the MPR at 12 per cent; Cash Reserve Ratio (CRR) at 22.50 per cent and liquidity ratio at 30.00 per cent.