Chika Mbonu: Central Bank Independence Crucial for Economic Growth

Business analyst Chika Mbonu has emphasised the importance of Central Bank independence for a healthy economy.

In an interview with ARISE NEWS on Thursday, Mbonu explained the distinction between fiscal policy, driven by the government, and monetary policy, managed by an independent central bank.

He said, “Every economy is driven by two key policies, fiscal policy is set by the government in power, while monetary policy is anchored by an independent central bank.

“This central bank manages the money supply, which directly impacts inflation, interest rates, and exchange rates,” he said.

Mbonu stressed the need for an independent central bank to effectively execute these policies and promote economic growth.

“The Central Bank of Nigeria must be free from political influence to function properly.”

His comments come amid discussions about a proposed amendment to the CBN Act by Nigerian lawmakers.

Mbonu expressed his disapproval of the amendment, and argued that it could undermine the bank’s autonomy.

 Mbonu raised concerns that political interference could hinder the CBN’s ability to manage the economy effectively.

“For the betterment of the country, the law seeking to amend the CBN Act should be abolished,” Mbonu concluded.

Boluwatife Enome

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