Sango-Ota (Ogun) – Dr. Titus Okunronmu a former Director of the Central Bank of Nigeria (CBN), said that the upward review of Interest Rate from 11 per cent to 12 per cent by the Apex Bank would make Investors careful in the allocation of resources.
Okunronmu in an interview with the News Agency of Nigeria (NAN) on Wednesday in Ota, said that investors and owners of businesses would need to rationalise their expectation for them to break even.
He explained that the upward adjustment of the Monetary Policy Rate (MPR) from 11 per cent to 12 per cent would also make investors to be objective in their decisions making because the cost of borrowing from the financial sector has gone up.
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”This development will make the cost of production as well as the price of product to also go up which if not properly managed will lead to downsizing of workers,” he said.
Okunronmu urged the Federal Government to create enabling environment in terms of improved infrastructure as well as good monetary policies for businesses to thrive in the country.
The Monetary Policy Committee meeting which ended on Tuesday in Abuja, decided to review the interest rate from 11 per cent to 12 per cent AND THE Cash Reserve Ratio from 20 per cent to 22.5 per cent.(NAN)