SAT, 21 MAY, 2022-theGBJournal | The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) is expected to hold its third meeting of the year on the 23rd and 24th of May 2022.
We envisage the “reactive function” of the Committee will be significantly challenged at this meeting, given the hawkish chorus among global central banks and unabating domestic inflationary pressures amidst the lingering Russia-Ukraine conflict.
We suspect the Committee would retain the MPR at 11.5% alongside other monetary policy parameters, given the CBN’s preference for its unorthodox policies. Besides, we think considerations about the implications of a rate hike on the domestic interest rate environment may prompt the majority of Committee members to push back a rate hike until the next policy meeting in July.
However, we do not rule out the possibility of a 50bps hike in the MPR given the hawkish rendition among global central banks and the indirect impact of the Russia/Ukraine crisis on domestic inflationary pressures.
Twitter-@theGBJournal|Facebook-The Government and Business Journal|email: gbj@govbusinessjournal.ng|govandbusinessj@gmail.com
