Chief Executive Officer of CPPE, Dr Muda Yusuf, made the remark while reacting to the outcome of the 306th meeting of the Monetary Policy Committee.
The MPC retained the Monetary Policy Rate at 26.50 per cent and left other policy parameters unchanged.
Yusuf said the decision reflected the cautious position of the apex bank amid uncertainty in the global economy.
According to him, rising geopolitical tensions, especially in the Middle East, have increased pressure on global energy prices.
He said higher energy prices could worsen inflationary risks and make it difficult for the CBN to relax monetary policy at this time.
Yusuf noted that the international economic environment remained fragile and required careful policy management.
He said the current situation did not create enough room for the apex bank to reduce interest rates.
According to him, oil prices and the continuing crisis in the Middle East have implications for inflation, especially in economies affected by energy cost pressures.
The CPPE boss said the CBN was being cautious because of the uncertain inflation outlook.
He added that rising energy prices remained one of the major risks facing the economy.
Yusuf said the decision to hold rates was understandable, given the need to guard against further inflationary pressure.
He explained that although businesses may prefer lower interest rates, monetary policy decisions must also consider wider economic conditions.
Asked whether the decision should be described as commendable, Yusuf said it was better to call it expected.
According to him, the current geopolitical situation made a rate hold the likely policy choice.
The CPPE chief said the CBN’s position showed concern about inflation, global energy market instability and the broader impact of external shocks on Nigeria’s economy.
The latest MPC decision means borrowing costs will remain elevated, while the apex bank continues to monitor inflation trends and global economic developments.
