The Centre for the Promotion of Private Enterprise (CPPE) has commended the Central Bank of Nigeria (CBN) for reducing the Monetary Policy Rate (MPR) by 50 basis points to 26.5 per cent, describing the move as growth-supportive but cautioning that its full benefits will depend on stronger fiscal discipline and improved policy transmission.
In a policy brief signed by Muda Yusuf, its Chief Executive Officer on Tuesday, the CPPE said the decision by the apex bank’s Monetary Policy Committee signals a gradual shift from aggressive tightening toward measured monetary easing.
He noted that the rate cut reflects improving macroeconomic fundamentals, including sustained disinflation, improved external reserves, relative exchange-rate stability and a strengthening trade balance.