The Tinubu Media Support Group (TMSG) has described the recent cut in interest rate from 26.5% to 23% as a fresh catalyst for economic growth particularly geared towards making Nigerians feel more positive impact of macroeconomic stability in the economy.
In a statement by its Chairman Emeka Nwankpa and Secretary Dapo Okubanjo, TMSG noted that the interest rate reset had become necessary after several months of consecutive drops in inflation rate.
It said: ” The decision by the Central Bank of Nigeria (CBN) to reduce Monetary Policy Rate (MPR) by 350 basis points from 26.5 percent to 23 percent was the first reduction this year.
“That the benchmark interest is the lowest since February 2024 shows that the CBN had been cautious with its monetary policy even after it cut the rate by 50 basis points in February this year.
“We acknowledge that the reduction is coming at a time of lower foreign exchange pressures as a result of economic policies which have led to improving current account surplus and external reserves that are at their highest level in 18 years.
“It is also coming against the backdrop of a sustained decline in headline inflation for three consecutive months in recent times.
“Although there are still misgivings in some quarters, we align with the position of the Centre for the Promotion of Private Enterprise (CPPE) that the cut in benchmark rate could reduce the cost of capital, stimulate investment and strengthen productive capacity in the real sector of the economy.
“It is the beginning of a long process and that is why the CBN governor, Mr. Olayemi Cardoso, emphasised that the decision should be seen as an operational adjustment to improve monetary policy transmission.
“We are however elated that the CBN and the Finance ministry have signed a memorandum of understanding (MOU) to strengthen coordination of fiscal and monetary policies to control inflation.”
The group urged Nigerians to keep faith by trusting the solid process being steadily institutionalised by the President Bola Tinubu administration’s vision to build a resilient and more progressive economy that hits a $1 trillion mark in 2030.
