Tightening interest rates, others may affect lending, growth — LCCI | Dailytrust

Tightening interest rates, others may affect lending, growth — LCCI

The Lagos Chamber of Commerce and Industry (LCCI) has said tightening monetary policy stance would stifle access to credit, and undermine the pro-growth agenda of the Central Bank of Nigeria (CBN).

Headline inflation rose by 17.33% in February 2021, the highest level since March 2017.

Commenting on the decisions of the Monetary Policy Committee (MPC) of the CBN at the March meeting held on Tuesday, LCCI noted said retaining policy parameters at 11.5% Monetary Policy Rate (MPR), Cash Reserve Ratio (CRR) at 27.5% and Liquidity Ratio at 30% was good for the economy.

LCCI Director General, Dr. Muda Yusuf said: “Holding policy stance seems to be the most appropriate decision at this moment considering the recent macro developments in the economy.

“We believe sustained intervention efforts of the bank would further enhance credit flows to the real economy, stimulate output growth and ultimately moderate inflationary pressures but with the high unemployment rate and weak employment levels in manufacturing and services sector, tightening monetary policy stance would stifle access to credit, and undermine the CBN pro-growth agenda.”

Dear Reader,
Every day, we work hard to provide readers such as you with the most accurate, up-to-date, and comprehensive information. Quality journalism costs money. Today, we're asking that you support us to do more. Your support means that Daily Trust can keep offering journalism to everyone in the world. sign up for as little as N1,000 to become a member. Learn more about our membership here

Bank transfers can be made to:
Zenith Bank
1017257739
Media Trust Ltd


Please send details of your bank transfer to the email or Whatsapp number below so that we can contact you.

If you have any questions, please let me know.

Inquiries:
Email: membership@dailytrust.com
Whatsapp: +234 806 990 3410