Central Bank of Nigeria (CBN’s) retention of Monetary Policy Rate (MPR) at 14 per cent will stagnate businesses, an ex-official of the Manufacturers’ Association of Nigeria (MAN) has warned. Mr John Aluya, a former Chairman of the Apapa Branch of MAN told the News Agency of Nigeria (NAN) on Wednesday in Lagos that high lending rate would inhibit business development.
On July 26, CBN increased the MPR by 200 basis points, from 12 per cent to 14 per cent, to combat inflation and stimulate growth. After a meeting on Nov. 22, the Monetary Policy Committee of the apex bank retained MPR at 14 per cent, Cash Reserve Ratio at 22.5 per cent and Liquidity Ratio at 30 per cent.
The bank has retained the rate at two consecutive MPC meetings. MPR is the benchmark rate at which commercial banks can borrow from the central bank to boost the level of liquidity in the economy. Read more