MPC: Rates Retention Consistent With Global Trends – Experts

Related stories

Oil Prices Set For Weekly Loss as War Premium Evaporates

Crude oil prices are on track for a...

List of Top 10 Most Advanced Countries in the World

Most Advanced Countries in the World: Switzerland consistently ranks...

Why African Countries Depend On Foreign Handouts, Aids — Obasanjo

By Kolawole Ojebisi Former President Olusegun Obasanjo has identified a...

Rivers Crisis: How Tinubu Brokered Peace Between Fubara, Pro-Wike Lawmakers

By Kolawole Ojebisi From all indications, President Bola Tinubu may...

Rivers Crisis: How We Resolved Our Rift With Fubara — Wike Reveals

By Kolawole Ojebisi Minister of the Federal Capital Territory and...

Financial experts have commended the retention of the Monetary Policy Rate (MPR) and other parameters by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN).

They said the outcome of the 278th MPC was in line with predictions and consistent with global trends among central banks.

They said this in interviews with the News Agency of Nigeria (NAN) on Tuesday in Lagos, while reacting to the outcome of the 278th MPC meeting.

The Association of Capital Market Academics of Nigeria (ACMAN) president, Prof. Uche Uwaleke, said the retention of the rates by the MPC was in line with market expectations.

Uwaleke said the decision to retain rates was to strike a balance in a stagflation era.

“As a matter of fact, most central banks are maintaining accommodative monetary policies due to the lingering negative impact of the COVID-19 pandemic,” Uwaleke said.

He explained that a reduction in the Monetary Policy Rate was not an option due to rising inflation and exchange rates pressure.

According to him, increasing the MPR can roll back modest progress made in the area of credit to the real sector and economic recovery generally.

“So, the best decision under the circumstance was to hold rates and rely more on development finance functions to stimulate economic growth,” Uwaleke said.

Uwaleke had predicted that the MPC would hold the rates in March in spite of rising inflation due to weak economic recovery, which stood at 0.11 per cent in the fourth quarter.

Also speaking, the Chief Operating Officer, InvestData Ltd., Mr Ambrose Omordion, told NAN that the decision of the MPC was in line with general mood of the market.

Omordion observed that it was too early to adjust the rates due to fragile recovery from recession.

“The outcome of the MPC meeting was in line with our expectations even when galloping inflation was a threat that could lead to rate hike but due to fragile growth or recovery from recession, it will be too early to start adjusting rates.

“The retaining of monetary policy instrument is to allow the economy to breath out and watch the recovery till the next MPC meeting in May with the expectation that government will address the insecurity challenge,” he said.

Omordion added that the nation’s hyperinflation was due to high cost of production, lack of structural reforms, unstable exchange rates and high unemployment rate at 33.3 per cent.

“With rising insecurity, high pump price of fuel and other challenges, government should review or rethink its subsidy removal because the way things are going, food inflation will hit 30 per cent and this will push March and April inflation higher,” he said.

NAN reports that the MPC at the end of its 278th meeting in Abuja on Tuesday, resolved to retain the MPR, or the controlling lending rate, at 13.5 per cent, with the asymmetric corridor at +200/-500 basis points around the MPR.

The CBN governor, Mr Godwin Emefiele, who read the communique at the end of the meeting, said the MPC also resolved through a unanimous vote to retain the Liquidity Ratio at 30 per cent.

The Cash Reserve Requirement was left unchanged at 27.5 per cent.

Emefiele said the decision of the committee to retain the controlling rates was informed by the need to observe the impact of steps already taken under a massive intervention plan to save the economy from COVID-19 pressures. (NAN)

Hamilton Nwosa
Hamilton Nwosa
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

[tds_leads input_placeholder="Your email address" btn_horiz_align="content-horiz-center" pp_msg="SSd2ZSUyMHJlYWQlMjBhbmQlMjBhY2NlcHQlMjB0aGUlMjAlM0NhJTIwaHJlZiUzRCUyMiUyMyUyMiUzRVByaXZhY3klMjBQb2xpY3klM0MlMkZhJTNFLg==" pp_checkbox="yes" tdc_css="eyJhbGwiOnsibWFyZ2luLXRvcCI6IjMwIiwibWFyZ2luLWJvdHRvbSI6IjQwIiwiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdCI6eyJtYXJnaW4tdG9wIjoiMTUiLCJtYXJnaW4tYm90dG9tIjoiMjUiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsImxhbmRzY2FwZSI6eyJtYXJnaW4tdG9wIjoiMjAiLCJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZV9tYXhfd2lkdGgiOjExNDAsImxhbmRzY2FwZV9taW5fd2lkdGgiOjEwMTksInBob25lIjp7Im1hcmdpbi10b3AiOiIyMCIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9" display="column" gap="eyJhbGwiOiIyMCIsInBvcnRyYWl0IjoiMTAiLCJsYW5kc2NhcGUiOiIxNSJ9" f_msg_font_family="downtown-sans-serif-font_global" f_input_font_family="downtown-sans-serif-font_global" f_btn_font_family="downtown-sans-serif-font_global" f_pp_font_family="downtown-serif-font_global" f_pp_font_size="eyJhbGwiOiIxNSIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_weight="700" f_btn_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_transform="uppercase" btn_text="Unlock All" btn_bg="#000000" btn_padd="eyJhbGwiOiIxOCIsImxhbmRzY2FwZSI6IjE0IiwicG9ydHJhaXQiOiIxNCJ9" input_padd="eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMCJ9" pp_check_color_a="#000000" f_pp_font_weight="600" pp_check_square="#000000" msg_composer="" pp_check_color="rgba(0,0,0,0.56)" msg_succ_radius="0" msg_err_radius="0" input_border="1" f_unsub_font_family="downtown-sans-serif-font_global" f_msg_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_size="eyJhbGwiOiIxNCIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_weight="500" f_msg_font_weight="500" f_unsub_font_weight="500"]

Latest stories

NDN
Latest News
Oil Prices Set For Weekly Loss as War Premium EvaporatesList of Top 10 Most Advanced Countries in the WorldWhy African Countries Depend On Foreign Handouts, Aids -- ObasanjoRivers Crisis: How Tinubu Brokered Peace Between Fubara, Pro-Wike LawmakersRivers Crisis: How We Resolved Our Rift With Fubara -- Wike RevealsEnergy Projects: Proton Energy Secures Major Funding Deal with AfreximbankFubara vs. Wike: Shehu Sani Expresses Doubt About Resolution, Says Fubara's Loyalists Won't Be HappyPrince Ademola Adeniji-Adele: The Forgotten Hero of June 12 China Launches Phase 2 Deep-Sea Gas Field AddingIran’s foray into fire, By Funke EgbemodePDP's BoT Flays Damagum, Says NEC Meeting Holds, Voids Anyanwu's ReinstatementFG To Nigerians: New Tax Laws Won't Come into Effect Until 2026Tinubu Inks Four Tax Bills Into LawBreaking Down Iran’s Oil Exports by CountryLagos: Sanwo-Olu Refutes Report, Probes Demolition of Peter Obi’s Brother’s Property
X whatsapp