The governor of the Central Bank of Nigeria (CBN), Sanusi Lamido has defended the double digit monetary policy rate currently being adopted by the bank’s monetary policy committee, warning that loans at single digits is of no use to the nation’s real sector with the derelict infrastructure.
He was speaking during an interactive session with the House of Representatives’ committee on banking and currency which sought to understand why monetary policy rates are high in the country.
The CBN governor said while it would be very easy for the apex bank to double the money in the system, which would lead to a crashed interest rate, it would hurt the economy as inflation will rise.
