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Mr. Godwin Emefiale

OTA/Nigeria: Dr Titus Okunrounmu, an economist, has advised the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to redouble its efforts towards promoting growth and development.

Okunrounmu, also a former Director, Budgeting Department of CBN, gave the advice in an interview on Tuesday, in Ota, Ogun.

He spoke on his expectation from the MPC two-day meeting, holding in Abuja from Thursday to Friday.

“The recommendations of the MPC should be centered toward promoting growth and development.

“In addition, they should do their best for the economy by ensuring that the general price level is stable,” he said.

The former CBN director said that all the Monetary Policy instruments were likely to be retained, as the economy was still on the path of recovery.

He said that the interest rate cannot be reduced as the nation’s budget deficit is being financed through borrowing.

Okunrounmu urged the Federal Government to prudently use the borrowed funds meant for budget deficit wisely in order not to face the problem of repayment in the future.

Recall that the MPC, at the end of its last meeting on July 27,  retained the Monetary Policy Ratio at 11.5 per cent.

The CBN Governor, Mr Godwin Emefiele, presenting a communique from the MPC meeting, said the committee also decided to hold all other parameters constant.

The Cash Reserve Ratio (CRR) was, therefore, retained at 27.5 per cent, Liquidity Ratio at 30 per cent and the Asymmetric Corridor at plus 100 and minus 700 basis points around the MPR.

Another major decision by the MPC then was the discontinuation of the sale of forex to Bureau de Change operators in the country.

Emefiele said the decision was informed by unwholesome practices by the operators, which he said had continued to mount undue pressure on the nation’s foreign reserves.

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