CBN Postpones MPC as Inflation Soars

Economic experts express concern over this delay
InflationGoogle photos

The Central Bank of Nigeria, amidst a surge in inflation, has once again deferred the meeting of its monetary policy committee. According to a report by Bloomberg on Monday, Dr Isa Abdulmumin, the CBN's Director of Corporate Communications, conveyed in a text message response, “MPC is not holding” this week.

The scheduled meeting, initially slated for Monday and Tuesday, marks the second postponement since Olayemi Cardoso assumed the role of governor in September. This delay extends the anticipation of investors and analysts keen to discern Cardoso’s strategy amid the inflation rate reaching 27.33% in October 2023.

AbdulMumin, in a conversation with The PUNCH, suggested a potential reason for the postponement, pointing to the upcoming Chartered Institute of Bankers of Nigeria dinner. The CBN governor is expected to present an economic roadmap for Nigeria during this event. 

AbdulMumin noted, “The Monetary Policy Committee meeting is not being held this week. All roads lead to the 2023 CIBN annual dinner slated for Friday, 24th.”

'The Governors Day,' as reported earlier by The PUNCH, will afford Cardoso the opportunity to address stakeholders on the economic and financial markets, reflecting on the past year's developments and outlining the economic outlook for the coming year.

Economic experts express concern over this delayh

With a focus on food, agriculture, and inflation, the experts emphasize that MPC decisions play a crucial role in helping investors comprehend the economic landscape. Yusuf acknowledged the challenges faced by the new leadership of the bank, suggesting that they might be taking time to familiarize themselves with the issues before communicating their stance.

In the midst of this, Cordros Capital predicts a further hike in the CBN's Monetary Policy Rate, currently at 18.75%, by 100 basis points. 

The firm observes rapid changes in the monetary policy space since the last MPC meeting in July and posits that additional rate hikes would underscore the apex bank's commitment to combating inflation, especially as near-term expectations lean towards an increase to 28.02% year-on-year peak in December.

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