Cut Lending Rates to Reflect New 23% MPR, Economist Tell Banks

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, has called on commercial banks to lower lending rates in response to the Central Bank of Nigeria's new Monetary Policy Rate of 23 percent. In a policy brief on the 307th Monetary Policy Committee meeting, Yusuf welcomed the 350 basis points cut from 26.5 percent, describing it as a significant shift from a restrictive monetary regime. He noted that the adjustment signals a rebalancing towards supporting growth, investment, and economic recovery while maintaining price and financial system stability. The review of the asymmetric corridor around the MPR from +50/-450 basis points to +50/-300 basis points further reinforces the recalibration of the monetary architecture.

Read More