A former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, has said the Monetary Policy Committee will likely retain all rates after its September meeting because there is no significant growth in the economy.
He said this during an interview with our correspondent on Wednesday.
The MPC had retained the Monetary Policy Rate at 11.5 per cent at the end of its meeting in July.
It also retained the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent respectively.
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 observed that the rate of population growth was higher than the GDP, while the country had not been able to turn the population growth into an advantage.
With high population, he said, it meant that whatever was produced in the country would be consumed.
He said the government was taking steps in combating insecurity which could help people to go back to farm and boost production.
By now, he said, the country should be more focused on backward integration.(www.tbiafrica.com)
