TUE. 24 JANUARY, 2023-theGBJournal| keeping with expectation, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) at its first meeting of the year, raised the benchmark interest for the fifth consecutive time, indicating that the fight against inflation is not over yet.
The CBN’s rate settling committee (MPC) voted to raise the MPR further by 100bps to 17.50% as it retained other policy parameters.
The MPC voted to retain the asymmetric corridor of +100/-700bps around the MPR, the CRR at 32.5 per cent and retain the Liquidity Ratio at 30 per cent.
The rate hike reflects the MPC’s concerns about the pressure on the domestic economy, given the slow growth recorded in Q3-22, the contraction recorded by the manufacturing sector, its first contraction since Q4-20 as well as inflationary pressures which remains intact.
Headline inflation is projected by analysts to remain above the CBN’s growth-aiding threshold of 12.50% y/y in the near term.
Besides, election spending is expected to add upward pressures on domestic prices.
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