Experts divided over CBN’s 3% interest rate slash

***CBN cuts rate to 23%, says stability achieved ***Rate cut still too high to boost businesses — NCMDLCA By Emma Ujah, Abuja Bureau Chief, Babajide Komolafe, Peter Egwuatu, Yinka Kolawole, & Efe Onodjae Mixed reactions yesterday trailed the Central Bank of Nigeria, CBN’s cut on interest rate by three per cent, as the Monetary Policy Rate, MPR, was reduced from 26. 5 per cent to 23 per cent. The governor of the apex bank, Mr. Olayemi Cardoso, who announced the new rate at the end of the 307th Monetary Policy Committee, MPC, meeting, in Abuja, described the decision as resetting it to meet the current financial market realities. Meanwhile, the National President of the National Council of Managing Directors of Licensed Customs Agents, NCMDLCA, Mr. Lucky Amiwero, described the CBN’s rate cut as insufficient to stimulate businesses and economic activities.

Also, Dr Muda Yusuf, Chief Executive Officer, Centre for the Promotion of Private Enterprise, CPPE, stated that the reduction of the MPR by 350 basis points from 26. 5% to 23% ia a timely reset and a major relief for the real sector. Reacting as well, Fiona Ahimie, President of Chartered Institute of Stockbrokers, CIS, said the reset in the rate to 23% is a significant development for the capital market and could mark the beginning of a new phase of asset repricing. Reacting, President of the Capital Market Academics of Nigeria, Professor Uche Uwaleke said: “ The MPC decision to cut the MPR by 350 basis points is justified by moderating inflation, exchange rate stability, improvement in FX market liquidity, and accretion to external reserves. “It is a welcome development, against the backdrop of the recently signed MoU between the Minister of Finance and the CBN governor on fiscal and monetary policies collaboration. ”.…