MPC decisions detrimental to investment, economic growth

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The CBN on Tuesday raised its benchmark lending rate by 50 basis points to 27.25 per cent.

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“Manufacturers and other investors need oxygen and stimulus, not policy measures that worsen an already suffocating situation,” he stated.Support journalism driven by facts, created by Nigerians for Nigerians. Our thorough, researched reporting relies on the support of readers like you.He emphasised that these decisions are misaligned with the prevailing mood of economic players, who are struggling to navigate a sluggish economic environment.

“Stifling financial conditions to address liquidity issues is detrimental to investment and growth,” he said, warning that the implications of the latest MPC decision could push borrowing costs above 35 per cent. “The operating and production costs of businesses would be further exacerbated by the latest monetary policy tightening,” he said, noting that there is an urgent need for the CBN to reconsider its approach in light of the challenges faced by Nigerian entrepreneurs.

 

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