Post-MPC May 2021: Status Quo Justified but Economy Still Shackled


Thursday, May 27, 2021 / 11:18 AM / by FDC Ltd / Image Header Credit: FDC Ltd


The decisions taken at monetary policy committee meetings are not as important as the guidance. Decisions are based on historical indicators whilst guidance are a signpost to the future. Yesterday's decision to maintain status quo at the Nigerian MPC Meeting was seen by some as a ritual, whilst economists were gladdened by the courage of the policymakers even though belated to adopt a reform oriented forex rate determination mechanism.

The delayering of the multiple exchange rate system which had bedeviled the Nigerian economy had been a subject of controversy for a long period. Now that it appears settled we should expect a crawling peg method and an increase in forex supply to ensure equilibrium in the market.

That notwithstanding the CBN's attempt to mop up excess liquidity could serve as a temporary antidote to consumer price inflation which still remains stubbornly high (18.12%).

In the slides and video link below, Bismarck Rewane carried out an insightful analysis on the recently concluded MPC meeting on the Channels television news at 10pm program.

Proshare Nigeria Pvt. Ltd.

Watch Video

Proshare Nigeria Pvt. Ltd. 

Proshare Nigeria Pvt. Ltd.

Related News

  1. May 2021 Meeting: Another MPC Decision to Wait and See
  2. CBN Communique No. 136 of the MPC Meeting - May 24-25, 2021
  3. MPC Holds All Policy Parameters At the End of May 2021 Meeting
  4. Pre MPC Note: CBN May Hold Parameters Constant Despite Persistent Inflationary Pressures
  5. MPC Slated to Hold its Third Meeting of the Year, Key Parameters to Remain Unchanged
  6. MPC Meeting: The Hawks Likely to Remain in the Minority
  7. Personal Statements By The MPC Members At The 135 MPC Meeting of Mar 22-23, 2021
  8. A Decent Rise in PSCE, Increased by 10.6% YoY to N31.25trn in March 2021
  9. Is the CBN's Fiat-led Intervention Working?
  10. A Further Welcome Advance in PSCE in February 2021


Proshare Nigeria Pvt. Ltd.

Related News