Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise (CPPE), has reacted to the Central Bank of Nigeria’s (CBN) decision to increase the Monetary Policy Rate (MPR) to 26.75%% from 26.25%.
The new rate was announced by Yemi Cardoso, the governor of the CBN, at the end of the two-day Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, July 23, 2024.
Other decisions carried out in the meeting include setting the asymmetric corridor around the MPR from +100 to -300 to +500 to -100 basis points and also retaining the Cash Reserve Ratio (CRR) of deposit money banks at 45% and merchant banks at 14% and retained the Liquidity Ratio at 30%.
The new interest rate means loans will become more expensive, while banks must increase the interest rates customers can earn from savings.
Speaking on the changes, Yusuf told TimesNow.com.ng that he expected the CBN to make adjustments but would prefer no changes.
He, however, emphasised that the government accelerate the implementation of fiscal policy measures to curb inflation.
His words:
Earlier, TimesNow.com.ng reported that the Central Bank of Nigeria (CBN) has announced rules that will see the end of the sale of dollars on the street in Nigeria.
The new guidelines issued for BDC operators aim to streamline their operations and enhance regulatory oversight.
CBN hopes these measures will help stabilise the naira and transparency of the foreign exchange market.
Proofreading by Nkem Ikeke, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
