CEM REPORT | Monetary Policy Committee (MPC), has said it would review its present monetary policy template in seeking new innovative approach of stabilising the economy.
MPC, which is the rate-fixing arm of the Central Bank of Nigeria (CBN), explained that the review was promted by the role of technology and innovation in output growth and economic development in Nigeria.
The CBN Governor and Chairman of the Committee, Godwin Emefiele, made the disclosure at committee’s Strategic Retreat titled “Monetary Policy Implementation in a Digitally-Evolving Developing Economy’’, held in Lakowe, Ibeju-Lekki in Lagos.
He stressed that the retreat provides a rare opportunity for members to assess their contribution to stabilising the economy in the past eight years.
“I, therefore, commend our choice of the theme of this retreat ‘Monetary Policy Implementation in a Digitally-Evolving Developing Economy’.
“The evolution of FinTechs, Cryptocurrencies, Digital Payments, Artificial Intelligence and Machine Learning, have changed the functioning of the financial and banking sectors, both globally and domestically.
“Therefore, the urgent call for the need to rethink financial system regulation, supervision and monetary policy implementation,’’
On the issue of raising inflation, the CBN Governor 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.
He expressed confident in his team of staff to be able to seek solutions outside textbook approaches to rein in the challenge.
He urged members to acquit themselves with relevant tools for enhanced regulation, noting that the next phase of growth would be driven by financial technology.
CBN’s Deputy Governor, Kingsley Obiora, who is charge of apex Bank economic policies, noted that digital payment surpassed cash payment for the first time last year.
He added that data proves that the world is entering an era dominated by a digital payment system and Nigeria is not exempted.
He, however, dismissed crypto currencies’ claim to currency, saying they do not meet the three essential conditions of money.
MPC recently increased 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 data released by the National Bureau of Statistics (NBS).