The Nigeria Employers’ Consultative Association has commended the Monetary Policy Committee of the Central Bank of Nigeria for reducing the Monetary Policy Rate from 13.5 per cent to 12.5 per cent.
Its Director-General, Timothy Olawale, gave the commendation on Friday in Lagos.
Olawale said the development signalled a pro-growth response.
The News Agency of Nigeria reports that MPC had on May 28 reduced its benchmark interest rate, the MPR, to 12.5 per cent from 13.5 per cent.
The CBN Governor, Godwin Emefiele, said the decision of the MPC was necessitated by the need to stimulate growth and recovery of the economy in the face of the impact of COVID-19 challenges.
The apex bank governor said the decision was made in a bid to stimulate the economy ahead the projected economic recession arising from the impact of coronavirus pandemic.
Olawale said such a move could lead to reduction in the cost of credit, increase investment and impact positively on output growth to address the current global challenges.
He said: “With the negative effects of COVID-19, the twin challenges of the global oil prices and over-exposure of our economy to external shocks, this decision is a welcomed development by the monetary authority to protect the economy.
“We applaud the current decision of the MPC, which aligned perfectly with the association’s earlier recommendation.”
The director-general, however, called for synergy between the fiscal and monetary policies in order to move the economy forward.
He called for more robust and coordinated stimulus packages for the sectors that were worst hit by the COVID-19 pandemic.
“Also, opening up the non-oil economy for more productivity, to reduce the shock expected from falling global oil prices, will be a welcome development in pulling the economy from nose-diving into recession,” Olawale said.