Dr. Titus Okunrounmu, a former Director of the Research Department at the Central Bank of Nigeria (CBN), has praised the Monetary Policy Committee (MPC) for reducing the interest rate by 50 basis points.
Okunrounmu made the remark in an interview with the News Agency of Nigeria (NAN) on Wednesday in Ota.
He described the MPC’s move as a positive and timely step aimed at supporting the full recovery of the economy. “I think the policy is in the right direction aimed at stabilising the inflation rate.” the ex-director said.
Okurounmu, however, advised the MPC to implement more policies to further bring down the prices of goods and services in order to stimulate economic growth.
RBN had reported that the MPC at its 304th meeting held from Feb. 23 to Feb. 24 in Abuja, cut the MPR by 50 basis points representing 26.50 per cent.
The committee also adjusted the asymmetric corridor to +50/-450 basis points around the MPR, retained the Cash Reserve Ratio (CRR) for Deposit Money Banks at 45 per cent and 16 per cent for Merchant Banks, and maintained the Liquidity Ratio at 30 per cent.