By Seun Ibiyemi
The Independent Media and Policy Initiative (IMPI) has applauded the Central Bank of Nigeria’s (CBN) decision to reduce the Monetary Policy Rate (MPR) to 27 per cent, describing it as a bold step towards stimulating economic growth.
On Wednesday, Dr. Omoniyi Akinsiju, the Chairman of IMPI, announced in a statement that the group’s recent move aligns with its previous policy projections.
He explained that the cut, the first in five years marked the beginning of a monetary easing cycle expected to extend over the next three quarters.
According to him, the CBN’s decision was data-driven, reflecting its correct reading of inflation trends and exchange rate stability.
“Our policy paper had projected that the CBN would cut rates, following five consecutive months of decline in headline inflation and the strengthening of the Naira,” Dr Akinsiju said.
He recalled that IMPI forecasted a five per cent Gross Domestic Product (GDP) growth for 2025, higher than the International Monetary Fund’s (IMF) projection of 3.4 per cent.
“Tuesday’s announcement is an affirmation that appropriate initiatives are in place to ensure monetary policies align with fiscal policies,” he added.
Dr Akinsiju stressed that the interest rate cut would lower borrowing costs for businesses, enhance the operating environment, and contribute to reducing the prices of goods and services.
He further projected that headline inflation, currently at 20.12 per cent, could fall to 17 per cent by December if supportive fiscal and monetary measures are sustained.
Akinsiju, however, urged federal authorities to maintain the momentum of appropriate policies to keep the economy firmly on the path of growth.