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 per cent; and Liquidity Ratio at 30 per cent.
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. (Sun)