Abuja: The Independent Media and Policy Initiative (IMPI) has welcomed the decision of the Central Bank of Nigeria (CBN) to reduce the Monetary Policy Rate (MPR) to 27 per cent. Dr Omoniyi Akinsiju, IMPI Chairman, said this in a statement on Wednesday.

According to News Agency of Nigeria, Akinsiju noted that the decision aligned with the position IMPI’s analysts had taken in its recent policy statement. He mentioned that the reduction, which is the first in five years, signals the beginning of a monetary easing cycle expected to continue in the next three quarters.

Akinsiju emphasized that the decision is well guided by data on inflation and exchange rate movements, reflecting that the apex bank correctly assessed the economic indicators before easing its hold on interest rates. He stated that the group’s policy paper, published earlier, projected that the CBN would soon cut interest rates, following five consecutive months of decline in headline inflation and a stronger Naira.

‘The IMPI had forecasted a five per cent Gross Domestic Product (GDP) growth in 2025, higher than the 3.4 per cent growth projected by the International Monetary Fund (IMF). Tuesday’s announcement is an affirmation that appropriate initiatives are in place to ensure that monetary policies align with fiscal policies,’ he said.

The IMPI boss further explained that the decision would lower borrowing costs for businesses, improve the operating environment, and eventually reduce prices of goods and services in the economy. He also stated that with reduced interest rates, the projection of a further decline in headline inflation from 20.12 per cent to 17 per cent by December was more realistic.

Akinsiju urged federal authorities to sustain the deployment of appropriate policies to keep the economy on a positive growth path.