Ex-CBN director lauds CBN on benchmark interest rate reduction

Dr Titus Okunrounmu, a former director, Budgetary Department of Central Bank of Nigeria (CBN), has commended the Monetary Policy Committee (MPC) of the Apex Bank for reducing Benchmark Interest Rate (BIR) from 12.5 per cent to 11.5 per cent.

Okunrounmu made the commendation in an interview with our reporter in Ota, Ogun on Wednesday.

It was reported that Godwin Emefiele, CBN governor, on Tuesday in Abuja announced after the two-day meeting of the MPC that the BIR would be reduced from 12.5 per cent to 11.5 per cent.

Others monetary policy instruments like the Cash Reserve Ratio and Liquidity Ratio are retained at 27.5 per cent and 30 per cent respectively.

It was also reported that this would be the second times that the MPC would be reducing BIR this year.

The former CBN director said that the MPC’s decision to cut the BIR was a better and welcome development that would encourage private investment in the country.

“If there is massive investment in the country, economic activities will pick up and boost employment opportunity,’’ he said.

He said that the nation was currently experiencing a huge unemployment.

Okunrounmu adding that the Federal Government needed to address this problem in order to eradicate poverty and achieve sustainable economic development.

He remarked that CBN was trying to bring down the nation’s inflation rate as 2020 budget was based on deficit financing, which might likely lead to inflation.