Increase in MPR and CRR will hurt the real sector of the economy- CPPE 

Center for the Promotion of Private Enterprise (CPPE) has said that the outcome of the Monetary Policy Committee [MPC] meeting of 27th February 2024 would hurt the real sector of the economy which is already contending with numerous macroeconomic challenges. 

 Dr. Muda Yusuf, Director/Chief Executive Officer of CPPE, while reacting to the potential downside effects of the heightened monetary policy rate (MPR) in a statement said the increase of MPR from 18.75% to 22.75%; and cash Reserve Ratio [CRR] from 32.5% to 45% pose a major risk to the financial intermediation role of banks in the Nigerian economy.   

Yusuf said the increase would constrain the capacity of banks to support economic growth and investment, especially in the real sector of the economy because the increases are quite significant.