By Mustapha Sumaila
A Financial Expert, Prof. Uche Uwaleke has advised the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to reduce the Monetary Policy Rate (MPR) by 50 basis points.
Uwaleke gave the advice in an interview with the News Agency of Nigeria (NAN) on Sunday ahead of the MPC meeting scheduled to hold on Tuesday, July 23 in Abuja.
He said it was also pertinent for the committee to maintain 30 per cent Liquidity Ratio and 22.5 Cash Reserve Ratio.
According to him, the call for adjustment of MPR is due to declining inflation rate from 11.35 per cent in May to 11.20 per cent in June as well as the growing external reserves and stability in exchange rate.
Uwaleke said the reduction was also necessary because of persistent bearish performance of the stock market due to high interest rates.
The expert said a gradual reduction in the MPR which was the benchmark interest rate was…
Source: News Agency of Nigeria
