Financial analysts have made predictions regarding an impending increase in lending rates in Nigeria as the two-day Monetary Policy Committee (MPC) meeting commences.

During the last MPC meeting, the Monetary Policy Rate (MPR) had already been raised to 18.5 per cent.

Given the current economic indicators, experts, including Jonathan Aremu, an economic expert and former Assistant Head of Research at the CBN, believe that there is a high probability of another MPR hike.

According to Aremu, the adjustment in MPR is not arbitrary but rather aims to manage the monetary flow in line with the economic situation.

He emphasizes that excessive money in circulation could lead to price inflation, necessitating a rate increase.

Similarly, Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, contends that the Central Bank may raise the MPR to curb inflation, contain exchange rate pressures, and address the surge in liquidity, which has seen an unprecedented increase of N9tn in money supply.

Scope Ratings’ Lead analyst for Nigeria, Thomas Gillet, echoes these sentiments, foreseeing a 100 basis points increase in the monetary policy rate to 19.5 per cent.

He attributes this move to recent reforms exacerbating near-term inflation, which is already hovering around record highs.

As the MPC meeting unfolds, stakeholders keep a close watch on the policy decisions that could shape the country’s economic landscape in the coming days.