Grapevine

Fiscal policies affecting fight against inflation – MPC

Some of the members of the MPC also stated that the current money supply of N4.05tn had increased credit facilities and put upward pressure on inflation.

They maintained that it was hard to get the desired results if fiscal and structural policies were either not in place or were countering the tightening measures of the CBN.

They added that further tightening of monetary policy was essential to curtail credit growth

One of the members, Aloysius Ordu, submitted that the balancing act facing the MPC was difficult in the best of times and far much more difficult when other policies – structural and fiscal – were not entirely pulling their weights.

“The monetary policy measures taken thus far are severely hemmed in by fiscal stresses that are making it difficult for monetary policy to do its job. Now more than ever, monetary policy needs much more help from fiscal and structural policies.