The Centre for the Promotion of Private Enterprise has reacted to the Central Bank of Nigeria’s decision to retain the country’s Monetary Policy Rate at 26.50 percent.
In a statement by CPPE chief executive officer, the Monetary Policy Committee decision to hold interest rates was a pragmatic move and good for Nigerian businesses.
DAILY POST reports that the apex bank governor, Olayemi Cardoso, announced the MPC members’ decision at its 305th meeting to retain the interest rate at 26.50 percent.
Reacting, CPPE said the decision is a reflection of CBN’s increasingly sophisticated understanding of the inflation dynamics currently confronting the Nigerian economy.
According to the economy think tank group,
The decision of the MPC would send a powerful signal of policy maturity, strategic restraint, and confidence in the direction of macroeconomic management at a time of heightened global uncertainty and mounting geopolitical tensions.
“The decision to hold rates therefore demonstrates a commendable recognition that excessive tightening at this stage could suffocate productivity, weaken industrial recovery, constrain investment appetite, and undermine employment generation.
“Economies do not grow on the strength of high interest rates; they grow on the strength of productivity, enterprise, investment confidence, and policy coherence,” CPPE stated.