General
CBN: Ex-director lauds MPC over interest rate reduction
A financial expert, Dr Titus Okunrounmu, has commended the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) for reducing the interest rate by one-percentage-point from 13.5 per cent.
A former director, Budgetary Department at CBN, Okunrounmu, made the commendation in an interview with newsmen in Ota, Ogun, on Friday.
According to him, the downward review of interest rate to 12.5 per cent by the Apex bank will encourage private investment to boost the nation’s economy.
He said that the apex bank was trying to induce those who are critically in need of loan facilities, to come and invest.
READ ALSO: COVID-19 restrictions: FCTA shuts bars, arrests violators
He said that the CBN decision to reduce the interest rate was an attempt to further encourage people to take credit and loans as the nation’s economic activities had slowed under the lockdown situation.
“With COVID-19 pandemic associated with lockdown, no investor will be willing to invest money in the country until the environment is conducive for investment,’’ Okunrounmu said.
He noted that productivity and investment would be higher with a lower interest rate rather than the higher interest rate, thus making the economy to grow faster.
Okunrounmu, however, said that with more investment, industry and agricultural sectors among others would further ease while the unemployment rate will reduce.
Newsmen report that Mr Godwin Emefiele, CBN Governor, had on Thursday announced a reduction in the interest rate from 13.5 per cent to 12.5 per cent.
Cash Reserve Ratio (CRR) and Liquidity Rate were retained at 27.5 per cent and 30 per cent respectively after the apex bank’s MPC meeting in Abuja.
NAN
-
Crime21 hours ago
UPDATED: One killed, others injured in US beach shooting
-
News23 hours ago
Data protection commission probe into NIMC privacy breach
-
Metro21 hours ago
FG promises to end estimated meter billings
-
News21 hours ago
Japa: Nigerian woman opens up on slavery, abuse in UK
-
Metro18 hours ago
Australian man falls to death from hot-air balloon
-
Metro18 hours ago
Fire razes Sokoto market,motorcycles burnt
-
News23 hours ago
Putin re-elected fifth term in controversial Russian election
-
Metro17 hours ago
Chaos erupts in Delta as police allegedly shoot protesters