By Vivian Emoni
The Abuja Chamber of Commerce and Industry (ACCI) has commended the decision of the Central Bank of Nigeria (CBN) to reduce the Monitory Policy Rate (MPR) to 26.5 per cent.
The chamber described the development as a cautious step to ease pressure on businesses and support economic recovery.
Chief Emeka Obegolu, President of the chamber said this while reacting to the apex bank’s decision to reduce the rates on Wednesday in Abuja.
The News Agency of Nigeria (NAN) reports that the Monetary Policy Committee of the CBN made the decision at its 304th meeting on Tuesday.
Obegolu said the 50-basis-point reduction signalled growing confidence in Nigeria’s disinflation path and macroeconomic stability.
He said that easing headline inflation and improved exchange rate stability provided a supportive backdrop for the policy shift.
According to him, the reduction in MPR, alongside the lowering of the Cash Reserve Ratio (CRR) for commercial banks, will help moderate borrowing costs, improve access to credit and stimulate investment.
“This is particularly for Micro, Small and Medium Enterprises (MSMEs),” he said.
He said that the chamber, however, acknowledged the MPC’s concerns over excess liquidity in the banking system.
“The introduction of a 75 per cent CRR on non-Treasury Single Account (TSA) public sector deposits was a necessary liquidity management measure.
“Although the move might temporarily tighten liquidity for some banks, it will strengthen monetary policy transmission and support price stability,” he said.
Obegolu also described the adjustment of the asymmetric corridor as a technical reform aimed at improving interbank market efficiency and policy effectiveness.
On its implications for businesses, he said that the policy mix was expected to reduce financing costs.
He said that it would also improve credit availability to the real sector, support private sector expansion and job creation, sustain exchange rate stability and boost investor confidence.
He also said that the measures would encourage prudent fiscal liquidity management and transparency.
While commending the CBN for its balanced approach, the ACCI president called for sustained coordination between monetary and fiscal authorities.
He said that the effort was to ensure that improved financial conditions translated into real sector growth.
He further called for targeted credit interventions, infrastructure development and regulatory reforms to reduce the cost of doing business.
“The ACCI is committed to working with policymakers and stakeholders to ensure that the evolving monetary environment delivers tangible benefits to businesses, investors and households,” he said. (NAN)(www.nannewd.ng)
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Edited by Kadiri Abdulrahman
