CBN retains key lending rates, justifies VAT hike proposal
Tola Akinmutimi is business a.m. Abuja Lead, Editorial & Business. You can contact him on tola.akinmutimi@businessamlive.com with information, stories and comments
The Monetary Policy Committee on Friday retained the Monetary Policy Rate 13.5 percent. and other key rates based on the socio-economic implications for the nation’s sustained growth and stability.
It attributed the decisions mainly to the prevailing economic situation in the country, largely the inflation rate, manufacturing index, insecurity and other micro and macro economic indices.
The bank also defended the proposed VAT rate hike rate from 5% to 7.5% in view of the revenue generation potential and other economic benefits to tax payers and public governance in the long run.
The Central Bank Governor, Godwin Emefiele, who briefed the media on the key decisions taken by the committee at its two-day meeting in Abuja, also spoke elaborately on recent policy measures introduced by the apex bank, saying they remain the best options to achieve financial system stability, deepen financial inclusion, promote cashless payments and stimulate growth of the economy.
He therefore appealed to Nigerians to bear with the immediate discomfort that may be associated with the fiscal and monetary measures as the long run gains will outweigh the initial pains.
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