Private Sector Hails CBN's 'Cautious' MPR Reduction, Urges De-risking of Business Climate

The Organised Private Sector and economic analysts have welcomed the Central Bank of Nigeria's recent Monetary Policy Rate (MPR) reduction, describing it as a cautious but necessary step toward economic recovery.Stakeholders however urged the Federal Government to take decisive action to de-risk the business climate and improve credit flow to the real sector. They noted that while the rate cut is a positive signal, the current restrictive interest rate environment continues to hinder economic growth.Business leaders lamented that persistently high interest rates cannot sustain economic expansion and called for productivity-led growth strategies. They emphasised that monetary policy alone cannot address Nigeria's economic challenges without complementary fiscal reforms and improved access to affordable credit for businesses.The MPR adjustment reflects the CBN's balancing act between controlling inflation and stimulating economic activity in a challenging macroeconomic environment.