The Centre for the Promotion of Private Enterprise (CPPE) has commended the Central Bank of Nigeria (CBN) for pausing interest rate hikes but urged further reductions to support economic growth.
Muda Yusuf, CEO of CPPE, stated in an interview with the News Agency of Nigeria (NAN) on Friday that maintaining the current rates aligns with economic conditions but stressed the need for gradual easing.
He criticised the Cash Reserve Ratio (CRR) at 50%, calling it the highest globally and urging a reduction. Yusuf also noted that the wide asymmetric corridor of +500/-100 basis points around the Monetary Policy Rate (MPR) needs review to prevent economic strain.
Yusuf argued that stabilising the exchange rate and relaxing monetary policies could lower costs in sectors like energy and pharmaceuticals, boosting business confidence. He warned that continued tightening could disconnect the financial system from the real economy, hindering growth.
At its 299th meeting, the CBN’s Monetary Policy Committee (MPC) retained the MPR at 27.5%, alongside the CRR and Liquidity Ratio, despite calls for moderation.
Credit: NAN (Text Excluding Headline)
