A former President, Association of National Accountants of Nigeria, Dr. Sam Nzekwe, has said the Monetary Policy Committee (MPC) will likely retain all rates after its September meeting.
Dr. Nzekwe during an interview on Wednesday said this is because there is no significant growth in the economy.
Nzekwe said, “The economy is producing minimally. It is only when the economy is moving that you can be moving upward or downward. Things are still fragile. They better maintain the whole indices as they are now, even though it is a good development that the Gross Domestic Product is growing. We have other things that should grow also in the economy.”
He also observed that the rate of population growth was higher than the Gross Domestic Product (GDP), while the country had not been able to turn the population growth into an advantage.
With the high population growth, he said, it meant that whatever was produced in the country would be consumed.
He said the government was also taking steps in combating insecurity which could help people go back to farm and boost production, adding that by now, the country should be more focused on backward integration.
The MPC had retained the Monetary Policy Rate at 11.5% at the end of its meeting in July and also retained the Cash Reserve Ratio and Liquidity Ratio at 27.5% and 30% respectively.