March 27, 2019 06:29 PM / by Bismarck Rewane of FDC
MPC made a surprise move in cutting the policy rate at yesterday’s meeting from
14% p.a to 13.5% p.a.
said it was a signal of a shift towards a more accommodative stance. The
Justification for the move was the existence of adequate external buffers, a
strengthening currency, and mild inflation.
markets have not reacted to the move because of the contradiction between
rate easing on the one hand and a simultaneous retention of a choking CRR
rate of 22.5% on the other. This means that monetary conditions will remain
CBN continues to adopt inflation targeting as its policy framework and using
the MPR as its anchor. The current move is coming late and is unlikely to have
the desired impact of boosting lending to the private sector and serving as a
catalyst for growth.
1. Monetary Policy:
MPC Springs A Dovish Surprise
2. Monetary Policy
Decision - Direct Hit or Own Goal?
3. CBN Communiqué
No. 123 of the MPC Meeting – Mar 25-26, 2019
4. MPC Reduces MPR
By 50bps To 13.50pct From 14pct
5. No Change Again
Expected From The MPC
Deterioration in Growth Outlook But No Global Recession
7. MPC Meeting:
Temporary Price Stability; Justification for a Cut in Rates?
8. Policy Trilemma
and Interest Rate Behaviour in Nigeria
9. NPL and Its
Effects on Banking Stability: Evidence From National and INTL Licensed Banks in
Statements By The MPC Members At The 122 MPC Meeting Of Jan 21-22, 2019
11. Five Takeaways
from CBN‘s 122nd Monetary Policy Committee Meeting, January 2019
12. CBN Communiqué
No. 122 of the MPC Meeting – Jan 21-22, 2019
13. CBN Communiqué
No. 121 of the MPC Meeting – Nov 21-22, 2018
14. CBN Communiqué
No. 120 of the MPC Meeting – Sep 24-25, 2018
15. CBN Communiqué
No. 119 of the MPC Meeting – July 23-24, 2018