Private Sector
May Increase Inflation, Massive Job Cuts.
Monetary Policy Rate, also known as interest rate, from 22.75
per cent to 24.75 per cent by the Central Bank of Nigeria will further
accelerate the country’s inflation and lead to massive job cuts across the
country, private sector operators.
The Nigerian Association of Chambers of Commerce, Industry,
Mines and Agriculture, and the Nigerian Association of Small Scale Industrialists
explained that the increase in MPR would worsen he private sector’s ability to
access affordable credit, and described the interest rate hike as a move that
would come with unintended negative consequences, the Lagos Chamber of Commerce
and Industry said the MPR hike was a price that businesses would have to pay,
given the current state of the economy.
The CBN Governor, Yemi Cardoso, who disclosed this after the
second Monetary Policy Committee meeting for the year in Abuja, adding that,
the new rate was focused on reducing current inflationary pressures and
ensuring sustained exchange rate stability.
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