MAN welcomes CBN interest rate cut to 23%

The Manufacturers Association of Nigeria (MAN) has welcomed the Central Bank of Nigeria’s decision to cut the Monetary Policy Rate by 350 basis points to 23 per cent. According to MAN's Director General, Segun Kadir, the reduction signals a shift from the tight monetary stance that has constrained manufacturing activity. The association expects the lower policy rate to reduce borrowing costs and improve access to working capital, inventory financing and investment funds.

However, MAN cautioned that the benefits may be limited while the Cash Reserve Ratio remains at 45 per cent for Deposit Money Banks, calling for a progressive review of the high CRR to free more deposits for lending to the real sector.

Brief written by urgent.news from Punch Nigeria's own syndicated text. Machine-written — may contain errors; check the original before relying on it.