…The last time the meeting held was in July 2023, under the then Acting CBN Governor, Folashodun Shonubi.
FRI, FEB 23 2024-theGBJournal| The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has schedule its usual two-day meeting for 26th and 27th of February, its first in the year and the first since Yemi Cardoso’s tenure began.
The last time the meeting held was in July 2023, under the then Acting CBN Governor, Folashodun Shonubi.
The Committee voted to hike the Monetary Policy Rate (MPR), which measures interest rate, from 18.5 percent to 18.75%, narrowed the asymmetric corridor to +100/-300 from +100/-700 and retained the Cash Reserve Ratio (CRR) at 32.5%.
Since then, the monetary policy space has changed rapidly, following some orthodoxy introduced by the CBN, particularly since the beginning of October last year.
Two notable changes since then include the removal of the maximum limit on the Standing Deposit Facility (SDF) and OMO auctions.
Sustained domestic price pressures (inflation), with the core inflation (up 98bps in January to 29.90% y/y (December: 28.92% y/y)) settling at a record high, as well as the sustained pressure on the local currency, is expected to significantly impact the Committee’s decision.
Analysts tell theG&BJournal that they expect a rate hike, to send a strong message that the apex bank is not relenting in its inflation fight.
Thus, they believe the MPC will continue to use a combination of interest rate increases and liquidity tightening to anchor medium-term inflation expectations.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
