The Limits of Heteredox Economics Revealed, MPC Trapped and Has to Hold

Proshare

Tuesday, March 24, 2020   /02:53 PM / by Proshare Research / Header Image Credit: EcoGraphics

 

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria today concluded its two-day policy meeting.

 

The committee, at the end of the meeting agreed to hold all policy parameters constant following recent interventions by the CBN to cushion potentially adverse impacts from the recent COVID-19 outbreak.

 

The committee's decisions are stated as follows;

  • The benchmark interest rate (MPR) was held at 13.50%
  • The cash reserve ratio held at 27.5%
  • The asymmetric corridor retained at +200bps and -500bps around the MPR
  • The Liquidity Ratio retained at 30.00% 

 

Today's decision has reveled that the  CBN has been trapped in a policy dilemma. The past policies adopted by the regulator has left slim room for application of conventional monetary tools.

 

For example, interest rates cannot be raised to fight inflation because it would worsen the slow growth caused by the Coronavirus and international oil price battles. The unfolding events perhaps represent the limits of heterodoxy.

 

Proshare Nigeria Pvt. Ltd.

 

Related News - Monetary Policy

  1. Fiscal and Monetary Responses to COVID-19 Menace: Racing Against Time
  2. Monetary Policy Preview - Caught Between the Devil and the Deep Blue Sea
  3. Fiscal or Monetary, Both, Neither?
  4. COVID-19: CBN, Bankers' Committee To Support Pharmaceutical Coys
  5. Bankers Committee Reviews Impact of COVID-19 On Economy, Announces Support Packages
  6. Coronanomics: Figuring Out CBN's Recent Policy Intervention
  7. CBN Policy Measures In Response to COVID-19 Outbreak and Spillovers
  8. Bank of England Measures to Respond to The Economic Shock from COVID-19
  9. Bank's Lending Rates Decline Albeit Slower Than Expected
  10. The Policy Wave in the Nigerian Banking sector: A Poison or a Pill?
  11. The Rationale for the Hike in the CRR

 

Proshare Nigeria Pvt. Ltd.

 

Related News - Global Markets

  1. The Federal Reserves is Running Out of Options to Stave Off a Coronavirus Depression
  2. Coronavirus Crisis Is Crushing Global GDP Growth
  3. COVID-19 Outbreak: How is Africa faring?
  4. Fed Actions, US Banks Discount Window Use Prudent Amid Turmoil
  5. There Is No Systemic Risk - Feedback From Goldman Sachs' Conference Call Held Sunday
  6. Coronavirus Containment Actions Pose Material Risk to Global Structured Finance
  7. Federal Reserve Cut Rates to Support the Flow of Credit to Households and Businesses
  8. Africa's Economy and Coronavirus: Business as usual?
  9. South Africa Slips into Recession
  10. Angola to Sell 30% Stake in Sonangol by 2027
  11. Coronanomics: Inside Nigeria's Stock Market Response
  12. A Monday to Remember, Few Places to Hide
  13. Global Markets Tumble As Oil Prices Dip To Five Year Lows
  14. South Africa's Economy: At The Mercy Of Power Sector

 

Proshare Nigeria Pvt. Ltd.

 

Related News - #Coronavirus

  1. Fiscal and Monetary Responses to COVID-19 Menace: Racing Against Time
  2. COVID-19: Access Bank, Ecobank Bank Leverage Online Channels
  3. Crude Oil: Unsold Cargoes Forces Price Slash
  4. COVID-19: NSE Extends Time to Submit Audited Financial Statement by Dealing Members
  5. COVID-19: Ventures Platform and Lagos State Government Partner in Fight Against
  6. Fragility of State Government Finances
  7. Philanthropic Efforts Towards COVID-19 Containment Globally
  8. Non-Essential Federal Public Servants to Stay and Work From Home to Check Spread of COVID-19
  9. COVID-19: NSE Activates 30-day Remote Work Plan; Remote Trading to Continue
  10. IsDB Supports OIC Countries With $730m To Combat COVID-19
  11. COVID-19: Presidential Task Force Issues Statement; FEC Meetings Suspended Until Further Notice
  12. Quiet Bond Market as COVID-19 Fears Creates Uncertainty Among Investors
  13. The Federal Reserves is Running Out of Options to Stave Off a Coronavirus Depression
  14. ACCESS Releases Update To Key Stakeholders on Coronavirus
  15. COVID-19: NSE Extends Time to File Audited Financial Statement for the Year Ended 31 December 2019
  16. Coronavirus: Oyo State Activates Emergency Operating Centres, Names Incident Manager
  17. COVID-19: Our Compliance with Lockdown and Measures Put in Place To Serve You
  18. COVID-19: CBN, Bankers' Committee To Support Pharmaceutical Coys
  19. Bankers Committee Reviews Impact of COVID-19 On Economy, Announces Support Packages
  20. WHO launches Health Alert service on WhatsApp
  21. Coronavirus Crisis Is Crushing Global GDP Growth
  22. Coronavirus: Firstbank Deploys Measures to Protect Employees, Customers and other Stakeholders
  23. Blunting the Impact and Hard Choices: Early Lessons from China
  24. COVID-19 Outbreak: How is Africa faring?
  25. COVID-19 Pandemic: Ecobank Encourages Customers to Adopt Digital Self-Service Solutions
  26. COVID-19 Pandemic and Latin America and the Caribbean: Time for Strong Policy Actions
  27. COVID-19: NSE Advises Companies to Put Adequate Precautionary Measures In Place Ahead of 2020 AGMs
  28. Can the Nigerian Economy Survive the Virus?
  29. What's Really Happening In Oil Markets?
  30. COVID-19: Lagos and Ogun States Ban High Density Social Gatherings
  31. Banks Bring Down Cost-to-income ratios As Industry Margins Tighten
  32. NCDC Releases Self Isolation Guidance for Nigerians
  33. COVID-19: CBN to Inject N1trn Stimulus Across Critical Sectors of the Economy
  34. Coronanomics: ICIEC Pledges $150m In Insurance Coverage For OIC Members
  35. Coronanomics: Figuring Out CBN's Recent Policy Intervention
  36. Oil Price Plunge to Pressure US Energy States and Locals
  37. Coronavirus to Weaken Sovereign Fiscal Positions; Track Record Matters
  38. FG Restricts Entry Into Nigeria from 13 Countries; Suspends Issuance of Visa on Arrival
  39. UK Foreign Office Issues Travel Advice Against Non-Essential Travel Worldwide
  40. Fed Actions, US Banks Discount Window Use Prudent Amid Turmoil
  41. CBN Policy Measures In Response to COVID-19 Outbreak and Spillovers
  42. Coronavirus Containment Actions Pose Material Risk to Global Structured Finance
  43. Federal Reserve Cut Rates to Support the Flow of Credit to Households and Businesses
  44. World Bank Group Increases COVID-19 Response to $14bn To Help Sustain Economies, Protect Jobs
  45. There Is No Systemic Risk - Feedback From Goldman Sachs' Conference Call Held Sunday
  46. Coronavirus Containment Actions Pose Material Risk to Global Structured Finance
  47. Africa CDC Policy Recommendation for AU Meetings and Travel During COVID-19 Outbreak
  48. Africa CDC Guidance on Community Social Distancing During COVID-19 Outbreak
  49. COVID-19 and the Nigerian Economy: Backed to the Wall
  50. Coronanomics: Inside Nigeria's Stock Market Response
  51. Coronavirus: IsDB President Calls For Coordinated Efforts To Tackle Pandemic
  52. Coronavirus: FG to Review Budget as Oil Price Plunges
  53. Potential Impact of the Coronavirus Epidemic: What We Know and What We Can Do
  54. World Bank Group Announces Up to $12bn Immediate Support for COVID-19 Country Response
  55. China's Official Manufacturing Index Crashed from 50.0 to a Record Low of 35.7 In February 2020
  56. FG Inter-Ministerial Meeting Reviews Strategies On Containing Coronavirus
  57. Arbitrary Increase in Prices of Protective and Hygiene Products on Account of Coronavirus Concerns
  58. Coronanomics: Understanding The Darker Side of A Virus's Economic Downside
  59. Coronavirus: Establishing The Nexus Between A Bug and Global Equity Markets
  60. WHO Director-General's Opening Remarks at the Media Briefing on COVID-19
  61. First Case Of Coronavirus Confirmed In Lagos
  62. COVID-19 Refinancing Risk Elevated for 6% of Rated China Corps
  63. Global Ports Vulnerable to Coronavirus-Related Volume Declines
  64. The First Innovative Corporate Bond Supporting Anti-Epidemic Is Given The Green Light To Issue
  65. Coronavirus May Add to Liquidity Strain for Some APAC Corporates
  66. Coronavirus Set to Dampen China's Economic Growth
  67. What Coronavirus Means for Investors
  68. Coronavirus Raises Risks for China Toll Road Operators
  69. Coronavirus Could Push Global Oil Market into Surplus
  70. Airlines Face Growing Pressure From The Coronavirus
  71. Coronavirus' Severity Will Frame Effect on Corps, Sovereigns
  72. China Government Suspend Equity Market Trading to Prevent Sell-Off

Proshare Nigeria Pvt. Ltd.
READ MORE:
Related News
SCROLL TO TOP