Home Business Money MPR Reduction: NECA Commands CBN
Money

MPR Reduction: NECA Commands CBN

Share
CBN's Logo
Share

The Nigeria Employers’ Consultative Association has commended the Monetary Policy Committee of the Central Bank of Nigeria for reducing the Monetary Policy Rate from 13.5 per cent to 12.5 per cent.

Its Director-General, Timothy Olawale, gave the commendation on Friday in Lagos.

Olawale said the development signalled a pro-growth response.

The News Agency of Nigeria reports that MPC had on May 28 reduced its benchmark interest rate, the MPR, to 12.5 per cent from 13.5 per cent.

The CBN Governor, Godwin Emefiele, said the decision of the MPC was necessitated by the need to stimulate growth and recovery of the economy in the face of the impact of COVID-19 challenges.

The apex bank governor said the decision was made in a bid to stimulate the economy ahead the projected economic recession arising from the impact of coronavirus pandemic.

Olawale said such a move could lead to reduction in the cost of credit, increase investment and impact positively on output growth to address the current global challenges.

He said: “With the negative effects of COVID-19, the twin challenges of the global oil prices and over-exposure of our economy to external shocks, this decision is a welcomed development by the monetary authority to protect the economy.

“We applaud the current decision of the MPC, which aligned perfectly with the association’s earlier recommendation.”

The director-general, however, called for synergy between the fiscal and monetary policies in order to move the economy forward.

He called for more robust and coordinated stimulus packages for the sectors that were worst hit by the COVID-19 pandemic.

“Also, opening up the non-oil economy for more productivity, to reduce the shock expected from falling global oil prices, will be a welcome development in pulling the economy from nose-diving into recession,” Olawale said.

Source NAN

Share

Businesstoday Magazine

Businesstoday Conference/Awards

Related Articles

Access Bank Hosts President Steinmeier, Commits To Strengthening German-Nigerian Trade Relations

Access bank last week welcomed the President of the Federal Republic of...

Edo Plans Interest-free Loans For Traders 

Edo State Governor, Senator Monday Okpebholo on Thursday revealed plans to give...

Cash Scarcity: CBN Pegs N100,000 Daily Withdrawal Limit On PoS Transaction

The Central Bank of Nigeria on Wednesday directed banks has to peg...

FG, States, LGCs Share N1.727tn  For November 

The Federation Account Allocation Committee (FAAC), at its December 2024 meeting chaired...