The Central Bank of Nigeria (CBN) is set to commence its 302nd Monetary Policy Committee (MPC) meeting on Monday in Abuja. This two-day session comes at a pivotal moment as CBN Governor Olayemi Cardoso and his deputy governors mark their second anniversary in office.
The MPC faces critical decisions on inflation management and interest rate adjustments as the country experiences its fifth consecutive monthly inflation decline, hitting 21.12% in August. Meanwhile, the monetary policy rate (MPR) has remained at 27.5% since July.
Despite the downward trend in inflation, price levels for goods and services remain stubbornly high.
Against this backdrop, the Centre for the Promotion of Private Enterprise (CPPE) has called on the CBN to ease the interest rate and cash reserve ratio (CRR) to stimulate economic activity. In a statement released Sunday, CPPE’s CEO, Muda Yusuf, argued that the current high MPR and CRR are inflating borrowing costs and stifling private sector growth.
“The Monetary Policy Rate at 27.5% and the Cash Reserve Ratio at 50% have significantly increased the cost of funds. These elevated lending rates have suppressed private sector borrowing, particularly in sectors like manufacturing, agriculture, SMEs, and real estate,” Yusuf said.
As Nigerians and financial stakeholders await the MPC’s decisions, expectations are high for moves that could lower borrowing costs, encourage investment, and support broader economic recovery.
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