CBN Rate Cut Aligns With Market Reality, Says Coleman MD

The managing director and chief executive of Coleman Technical Industries Limited, George Onafowokan, has described the recent adjustment in the Central Bank of Nigeria’s (CBN) Monetary Policy Rate (MPR) as a reset aimed at aligning monetary policy with prevailing market realities.
Onafowokan, while noting that the banking sector recapitalisation had fuelled liquidity that forced down lending rates below the MPR said the decision of the Monetary Policy Committee to reset the rates was apt and expected.
According to him, the market had already moved away from the previous 26.5 per cent rate, with commercial lenders offering loans at about 22 to 23 per cent. He noted that the gap betwee...