MON, NOV 20 2023-theGBJournal|The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) failed to meet again to decide interest rate direction, the second time the rate decision meeting has been shelved since the assumption of office of the new CBN Governor, Olayemi Cardoso.
The CBN had scheduled the meeting for today and tomorrow (20th and 21st of November), after failing to have its September policy meeting.
The CBN spokesman, Isa Abdulmumin, confirmed the meeting has been shelved in a text message today to close sources.
The CBN, as at press time has not explained why the meeting is shelved.
However, 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.
The significant changes include removing the maximum limit on the Standing Deposit Facility (SDF) and OMO auctions.
Analysts projects a further 100bps rate hike when the apex bank eventually meets.
”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,” Cordros Research analysts said in a not to theG&BJournal.
”Besides, we think that maintaining the MPR at current levels will not be synchronous with the lingering increase in the market interest rates. we expect the MPC to increase the MPR by at least 100bps at its November policy meeting”
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