- LCCI: Low-Interest Rate ‘ll Stimulate Investment
The Lagos Chamber of Commerce and Industry, LCCI, yesterday said to ultimately have a moderating effect on inflation, there is need for low interest rate which will stimulate investment, impact positively on growth, create more jobs, increase income and boost output.
In a Media briefing on the state of the economy, LCCI President , Mr. Babatunde Ruwase said the chamber notes the decision of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) at its meeting
of 23rd and 24th July 2018, adding that, Monetary policy rates were retained, making the 10th retention of the rates by the MPC.
“This was underpinned by the worry of the CBN about the risks to inflation, exchange rate, foreign reserves and capital flows.
However, times like these calls for prioritization in favour of stimulation of investment and growth. This meant giving priorities to job creation and poverty reduction, which are cardinal programmes of the present administration”
“We commend the creation of a single digit interest rate window through the issuance of Commercial Papers by the large corporate, especially for the real sector. It is gratifying that this window also offers long term facility of up to seven years tenure. This is salutary, and we commend the CBN for the bold move.