The rate-fixing arm of the Central Bank of Nigeria (CBN), the Monetary Policy Committee (MPC), commenced a retreat in Lagos, yesterday, to assess its framework and tools ahead of a crucial meeting held tomorrow and Tuesday.
 
The retreat was last held four years ago, before COVID-19 – a crisis that reset the global economy and conventional monetary regulation.

The CBN Governor and Chairman of the Committee, Godwin Emefiele, said the meeting would give the members a rare opportunity to assess their contribution to stabilising the economy in the past eight years since he took over.

The governor said MPC would review their template with a view to adopting the existing approach, changing it entirely or finding a mid-way as it seeks innovative ways of stabilising the economy.

MPC increased the interest rate by 150 basis points at the last meeting, bringing the benchmark to 13.5 per cent, as the global economy battles surging inflation.

Yet, inflation has remained sticky, hitting 18.6 per cent in June, according to the figures released by the National Bureau of Statistics (NBS) yesterday.
 
Emefiele said inflation, globally, remains a major concern, but more worrisome of slowing growth – a situation that has limited the headroom for containing the speed prices are rising.

But with about 150 economics PhD holders in the apex bank, he was confident his team would be able to seek solutions outside textbook approaches to rein in the challenge.
 
He told the members that the next phase of growth would be driven by financial technology; hence they must acquit themselves with relevant tools for enhanced regulation.

The Deputy Governor in charge of economic policy, Kingsley Obiora, reeled out statistics of the changing trend of global payment and suggested that Nigeria is not an exemption.
 
That digital payment surpassed cash payment for the first time last year, he said, is a confirmation that the world is entering an era dominated by a digital payment system.

He, however, dismissed crypto currencies’ claim to currency, saying they do not meet the three essential conditions of money.