Economy, Finance

Lagos Chamber commends CBN on retention of MPR at 11.5%

The Lagos Chamber of Commerce and Industry (LCCI) has commended the Central Bank of Nigeria (CBN), describing the retention of the Monetary Policy Rate (MPR) at 11.5 per cent as a good decision.

Dr Muda Yusuf, Director-General, LCCI,  while reacting to the outcome of the 277th Monetary Policy Committee (MPC) meeting on Tuesday said the decision of the MPC to retain the MPR otherwise known as interest rate was expected.

The MPC voted to retain the MPR at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR.

Also the Cash Reserve Ratio and the liquidity ratio were both retained at 27.5 per cent and 30 per cent, respectively.

The LCCI DG said the focus of monetary and fiscal policies at the moment with the economy grappling to recover from the impact of the COVID-19 pandemic should be to boost growth and facilitate economic recovery.

“The decision of the MPC to retain the key monetary policy rate was expected.

“For an economy that is still grappling with recession, high unemployment, worsening poverty, weak output growth, and subdued business performance, the rate retention was a good policy choice.

“Although skyrocketing inflation was a concern, more so given the fact that price stability is a key mandate of the CBN.

“But it is desirable to prioritise growth and recovery at this time.

“The LCCI therefore welcomes the outcome of the MPC meeting,” he said.

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