Sunday, September 16, 2018 08:00 AM / Proshare Content
Nigeria: Economic Dashboard @ 140918
From the Editor’s Desk
What To Expect From The Market
In recent time, interbank call rate softened from an heist of 25% at the beginning of the year to 4.2% at the end of August 2018. The softening in the interbank rate witnessed is due to the growing rise in liquidity.
The rise in liquidity steam from the growing proximity to the election cycle, which has become more of a qualitative pressure on the pattern of interbank call rate. In addition to continuous redemption of short-term instrument by the Federal Government, which has greased the secondary market with liquidity
As earlier mentioned, in the past we do expect the bank to resort to indirect tools such as Open market operation (OMO) and Repo to best manage liquidity moving forward.
Fig 1: Interbank Call Rate
The National Bureau of Statistics, Nigeria published the inflation figures for the month of August 2018, core inflation for the month of August further decelerated from 10.2% to 10%, thereby sustaining its earlier trajectory. Food inflation rose slightly from 12.85% in July to 13.1% in the month of August, therefore rising slightly by 0.25. Inflation on a year on year basis (YOY) rose from, 11.14% to 11.23%, evidently confirming fears of an emergence of a concave in price movement compared on year on year basis.
More importantly, the divergence in the direction of price movement further support the inherent bridling slack in the cycle due to push factors. Obviously, it is becoming more difficult than ever before, to restore the dynamic adjustment path to its initial position prior the recession. There is a pressing need by both side of the aisle monetary and fiscal to provide the desperately needed even keel.
Fig 2: Inflation
Going forward, we remain neutral on convexity taking hold currently on the short end of the yield curve, due to the presence of positive real interest rate. However, we do expect yields on treasury bills to tick upwards, as exceptional inflation seem to diverge from previous trajectory.
Certainly, the current dynamic further foster replenishing of cash, regardless of the inability of convexity . More importantly, the dynamic in price movement threaten the Central Bank’s policy objective in achieving its long awaited sweet spot (single digit inflation).
Monday, September 17, 2018
the International Association of Ports and Harbours (IAPH) Africa Regional Conference in Abuja while Jim Ovia launches his book Africa Rise and Shine same day in Lagos.
Tuesday, September 18, 2018
The Bank of Japan is on this day set to release its Monetary policy Statement while Hong Kong releases its Unemployment Rate for August 2018
The J Bendeb Sylmar Associates in conjunction with the Lagos State Safety Commission will on this day hold Petroleum Marketers Safety Conference in Lagos while The Convention on Business Integrity in collaboration with Business Day Newspapers holds a forum on Regulatory Conversation in Lagos.
Wednesday, September 19, 2018
The is scheduled to release the Air Transport Data for Q2 and Nigerian Domestic and Foreign Debt for June
The European Central Bank President Draghi is on this day set to speak, his comments may determine a short-term positive or negative trend while the United Kingdom releases its Consumer Price Index Report YoY .
The German Government will on this day release a 10 year Bond Auction.
Thursday, September 20, 2018
Premier Paints Plc Company's will on this day hold its Annual General Meeting in Ogun while the Nigeria South Africa Chamber of Commerce holds its Breakfast Meeting in Lagos
Friday September 21, 2018
Aluminium Extrusion Plc will on this day hold its Annual General Meeting in Enugu while the Financial Market Dealers Association holds its Financial Market Conference holds same day in Lagos
Lagos Innovating Justice Conference will on this day release of the Justice Needs and Satisfaction Survey (JNS) in Lagos
Check out our for event details and follow us on , , and for updates as the week unfolds. Yours to Serve!
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