Dr. Titus Okunronmu, former Director of Research Department, Central Bank of Nigeria (CBN), predicts that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) would raise the lending rate from its current 24.75 percent.
Okunronmu made the forecast during an interview on Monday in Ota, Ogun. The financial expert talked against the background of the MPC meeting slated for Monday and Tuesday.
He claimed that the MPC will boost the loan rate because the CBN may not want to force it down, and that the lending rate would remain high until the inflation rate fell.
“It is at the same level of inflation that CBN will net or fix the lending rate,” he said.
According to the former CBN director, the higher the inflation rate, the less profit commercial banks will record.
