SAT, NOV 18 2023-theGBJournal|The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) is expected to meet on the 20th and 21st of November after failing to have its September policy meeting, following the appointment of the new CBN Governor.
Since the last MPC meeting in July, the monetary policy space has changed rapidly, given some orthodoxy introduced by the CBN, particularly since the beginning of October.
Analysts at Cordros Research tells theG&BJournal that they expect the MPC to increase the Monetary Policy Rate (MPR) by at least 100bps at the policy meeting.
”We believe that further rate hikes will send a strong message that the apex bank is not relenting in its inflation fight, particularly as near-term inflation expectations are tilted to the upside, potentially reaching a 28.02% y/y peak in December.”
Besides, we think that maintaining the MPR at current levels will not be synchronous with the lingering increase in the market interest rates.
Thus, to align with the recent market interest rate increases, the Committee will likely favour a further increase in the MPR more so that the MPR remains the key signaling tool for market interest rates and inflationary pressures have remained intact.
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