ADVERTISEMENT
The Sun Nigeria
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
The Sun Nigeria
No Result
View All Result
Home Business

‘CBN’s retention of policy parameters’ll enhance credit flow, stimulate output growth’

25th March 2021
in Business
0
‘CBN’s retention of policy parameters’ll enhance credit flow, stimulate output growth’
0
SHARES
135
VIEWS
Share on FacebookShare on Twitter

By Merit Ibe

The Lagos Chamber of Commerce and Industry (LCCI) has opined that the decision of the Monetary Policy Committee of the Central Bank of Nigeria (CBN) to retain its policy parameters would enhance credit flows, stimulate output growth and moderate inflationary pressures.

The LCCI assertion came amid calls on the committee to ensure increased attention to its foreign exchange policies which also have profound implications for economic performance and investor  confidence, noting that they are as strategic as liquidity management functions.

The MPC of the apex bank had on Tuesday opted to retain policy parameters during its March meeting with Monetary Policy Rate (MPR) at 11.5 per cent; Cash Reserve Ratio (CRR) at 27.5 percent; and Liquidity Ratio at 30 percent.

Director General of LCCI, Dr Muda Yusuf, in his reaction on the decision of the committee said the chamber appreciates the dilemma which the current stagflation condition presents to the monetary authorities, noting the imperative of striking a balance between stimulating output growth and curbing rising inflationary pressures.

“Considering recent macro developments in the economy, holding policy stance unchanged seems to be most appropriate decision at this moment.

“The CBN governor stated at the briefing that the bank’s current policy focus anchors on boosting output growth given the fact that the domestic economy narrowly exited recession in the fourth quarter of 2020.” He said.

He believes sustained intervention efforts of the bank would further enhance credit flows to the real economy, stimulate output growth and ultimately moderate inflationary pressures.

The chamber noted that with unemployment rate at a record high of 33.3 percent coupled with weak employment levels in manufacturing and services sector, tightening monetary policy stance would stifle access to credit, and undermine the pro-growth agenda of the CBN.

“Headline inflation rose by 17.33 percent in February 2021, the highest price level since March 2017.

“As we have stated in our previous position papers, consumer prices are currently driven by cost-push factors including heightened insecurity resulting in persistent decline in agricultural output; foreign exchange illiquidity, exchange rate depreciation, higher energy prices and upward adjustment of electricity tariffs, which are beyond the control of monetary authority.”

Dr Yusuf endorsed the position of the MPC on the need for fiscal authorities to expedite actions in addressing these challenges and other investment climate issues constraining the supply side of the economy and fuelling inflationary pressures.

“Foreign exchange framework is key to the price stability mandate of the CBN.”

He pointed out the divergent positions of both the fiscal and monetary authorities on the country’s foreign exchange policy framework, stressing it was important for the fiscal authorities, CBN and Economic Advisory Council to be on the same page as far as the country’s foreign exchange policy framework was concerned.

“This lack of coherence among policymakers sends a negative signal to the investment community, aggravates uncertainty and undermine the confidence of investors.”

Tags: central bank of nigeria (cbn)lagos chamber of commerce and industry (lcci)stimulate output growth
Rapheal

Rapheal

Related Posts

Halting importation of dirty fuel
Business

Generator economy: Nigerians spend $22bn yearly on fuel –Report

20th April 2021
BDCs take giant steps forward on regulatory compliance
Business

BDCs take giant steps forward on regulatory compliance

20th April 2021
Polaris Bank boss charges new employees on opportunities in digital age
Business

Polaris Bank boss advocates early saving culture

20th April 2021
Next Post
Reasons Okorocha desperately wanted me out —Agbaso

Reasons Okorocha desperately wanted me out —Agbaso

Tuchel warns Chelsea against complacency

Ramat Cup: Kwara crushes Kano to book s/final ticket

Kida, Olopade, Monimitchelle, others shine at 7th City Merit Awards

Premier Basketball League to get new sponsor soon –Kida

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Highlights

Agony as petrol queues resurface in Abuja

Onuigbo presses ahead with climate change bill

Kumuyi to storm FCT, North with 6-day ‘Soaring Above’ crusade

Mining: FG to collaborate with states on sector development

CDS to media: ‘Drumming gongs of war won’t take Nigeria anywhere’

ADF hails Anyanwu’s emergence as Nzuko Umunna president

Trending

Join JUSUN strike now, Kokori tells NLC, TUC, others
National

Join JUSUN strike now, Kokori tells NLC, TUC, others

20th April 2021
0

By Sunday Ani The former General Secretary of the National Union of Petroleum and Natural Gas Workers...

Anambra guber: Soludo, others know fate June 23, as APGA holds primaries

Anambra guber: Soludo, others know fate June 23, as APGA holds primaries

20th April 2021
Your politics of bitterness kill Edo, Afemai in Diaspora tells Obaseki

Printing of N60bn allegation: Obaseki fomenting confusion – Arewa Youths

20th April 2021
Agony as petrol queues resurface in Abuja

Agony as petrol queues resurface in Abuja

20th April 2021
Onuigbo presses ahead with climate change bill

Onuigbo presses ahead with climate change bill

20th April 2021

Follow us on social media:

Categories

  • Abuja Metro
  • Arts
  • Broken Tongues
  • Business
  • Business Week
  • Cartoons
  • Citizen Joe
  • Columns
  • Cover
  • Culture
  • Duro Onabule
  • Editorial
  • Education Review
  • Effect
  • Elections
  • Entertainment
  • Events
  • Features
  • Femi Adesina
  • Food & Drinks
  • Frank Talk
  • Funke Egbemode
  • Gallery
  • Global Square by Kenneth Okonkwo
  • Health
  • Insights
  • Kalu Leadership Series
  • Kunle Solaja
  • Kunle Solaja
  • Letters
  • Lifeline
  • Lifestyle
  • Literary Review
  • Marketing Matters
  • Muiz Banire
  • National
  • News
  • Offside Musings
  • Opinion
  • oriental news
  • Politics
  • Press Release
  • PressClips
  • Public Sphere
  • Ralph Egbu
  • Shola Oshunkeye
  • Sideview
  • South-west Magazine
  • Sponsored Post
  • Sporting Sun
  • Sports
  • Sun Girl
  • Tea Time
  • The Flipside – Eric Osagie
  • The Sun Awards Live
  • The Sun TV
  • Thoughts & Talks
  • Time Out
  • Today's cover
  • Tola Adeniyi
  • Travel
  • Travel & Tourism
  • Trending
  • TSWeekend
  • Turf Game
  • Uncategorized
  • Updates
  • Views from Abroad
  • Voices
  • World
  • World News
  • Home
  • About Us
  • Paper Ad Rate
  • Online Ad Rate
  • The Team
  • Contact Us
  • Privacy Policy

© 2019 The Sun Nigeria - Managed by Netsera.

No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun

© 2019 The Sun Nigeria - Managed by Netsera.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist