AS the Monetary Policy Committee, MPC, of the Central Bank of Nigeria begins its third meeting of the year today, analysts have said members of the committee will retain the Monetary Policy Rate, MPR, at 14 percent for the 10th consecutive time.
At its last meeting in May this year, the MPC maintained the MPR at 14 percent, with the asymmetric corridor at +200 and -500 basis points around the MPR; it retained the Cash Reserve Ratio, CRR, and Liquidity Ratio, LR, at 22.50 percent and 30 percent respectively.
The MPC has retained the MPR at 14 percent since July 2016 when it hiked the rate for the third consecutive row in a year in response to rising inflation rate, which peaked at 18.72 percent in January 2017.
Though the inflation rate had been on the downward trend since then, falling for the 16th consecutive month to 11.61 percent in May, the MPC had continued to retain the MPR at 14 percent citing risks to the inflation outlook exchange rate stability.
Commenting on the outcome of the MPC holding today, Managing Director/Chief Executive, Financial Derivatives Company Limited, Bismarck Rewane, stated that the MPC will not make any change.