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Experts canvass expansionary monetary policy, reduced MPR as committee meets Monday

Next week’s Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting slated for Monday and Tuesday to deliberate on developments in the economy has started eliciting reactions from stakeholders.

A number of financial pundits who bared their minds with our correspondent Thursday in unison said they expect nothing less than making the MPC to begin an expansionary monetary policy by reducing the Monetary Policy Rate.

Analysts are upbeat that top on the agenda of the meeting is the need to tackle the biting recession occasioned by slow growth in the economy, rising inflation and the volatility in the foreign exchange market.

Another area of high expectation by experts is for members to take decisions that will affect the exchange rate.

The bi-monthly meeting will likely see the 11-member MPC take some key economic decisions that may affect the nation’s macro-economic indicators.

In a notice posted on its website, the CBN stated that the 253rd meeting of the MPC would hold by 10am on Monday and Tuesday at the corporate headquarters of the apex bank in Abuja.

Many of the experts say this is time for the apex bank to focus of the MPC and begin moves on how to inject more liquidity into the system rather than taking it out.

Inflation is currently at 18.3 per cent but it is not caused by excess liquidity in the system, it is cost push. It is time for us to address economic recovery.