A financial expert, Dr Titus Okunrounmu, has commended the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) for reducing the interest rate by one-percentage-point from 13.5 per cent.
According to him, the downward review of interest rate to 12.5 per cent by the Apex bank will encourage private investment to boost the nation’s economy.
He said that the apex bank was trying to induce those who are critically in need of loan facilities, to come and invest.
He said that the CBN decision to reduce the interest rate was an attempt to further encourage people to take credit and loans as the nation’s economic activities had slowed under the lockdown situation.
He noted that productivity and investment would be higher with lower interest rate rather than higher interest rate, thus making the economy to grow faster.
Okunrounmu, however, said that with more investment, industry and agricultural sectors among others would further ease while the unemployment rate will reduce.
Edited By: Tayo Ikujuni/Abdulfatah Babatunde (NAN)