The Central Bank of Nigeria (CBN) will begin today, a two-day meeting to review the economy and decide on exigent monetary policies given global and national outlooks.
Given this, there is apprehension in the economic circles over the direction of monetary policies.
Investment bankers, financiers, investors, business owners, and research and advisory experts conceded that the decisions of the CBN Monetary Policy Committee (MPC) will have a significant influence on the general economic outlook, including the flows of investments between the fixed and non-fixed security markets.
However, experts differed on the possible headline decision by the apex bank.
Though the majority feel that the time is ripe for CBN to abandon its long-running dove stance and hike the Monetary Policy Rate (MPR), many experts said the bank may opt to retain the rate, its classical policy view in the recent period. The MPR has been unchanged at 11.50 percent since September 2020.
Financial Derivatives Company (FDC), headed by Bismarck Rewane, said there was “no more room for the MPC to wiggle” with the continuing high inflationary trend.
Chief Executive Officer, Marble Capital Limited, Mr. Akeem Oyewale, said the CBN might retain the MPR at 11.50 percent, despite the pressure from the global economic dynamics.
Cordros Capital stated that a modest rate increase may be underway given the overall outlook of the changing dynamics but the apex bank may retain the MPR and other parameters, in line with the previous argument of economic stability and productivity.
