The Manufacturing Association of Nigeria (MAN) has said that the new interest rate will further constrain the growth of the manufacturing sector, adding that the purchasing power of consumers, production levels, competitiveness and sales will face further decline.
After the 296th meeting of the Monetary Policy Committee (MPC), which ended on Tuesday, the Central Bank of Nigeria (CBN) increased the Monetary Policy Rate (MPR) by 50 basis points from 26.25 per cent to 26.75 per cent. The MPC widened the asymmetric corridor around the MPR from +100 to -300 basis points to +500 to -100 basis points. Additionally, the MPC maintained the Cash Reserve Ratio (CRR) for deposit money banks at 45 per cent and for merchant banks at 14 per cent and retained the Liquidity Ratio at 30 per cent.
