MPC meeting: CBN to maintain status quo on parameters amid economic recovery

By Chioma Obinagwam

As the 282nd Monetary Policy Committee (MPC) meeting extends to the second day, there are strong speculations that Nigeria’s apex monetary authority, the Central Bank of Nigeria (CBN) will leave all monetary parameters unchanged.

Confiance News gathered from the weekly report of, financial advisory firm, Afrinvest Research.

The financial advisory firm argued that despite a moderate improvement in the third quarter (Q3) 2021 report by Nigeria’s agency for statistical data, the National Bureau of Statistics (NBS), which showed a 4.03 percent growth in Gross Domestic Product (GDP), a 15.99 percent moderation in headline inflation, stabilisation in the crude oil price to $80 per barrel, among other positive triggers will not prompt the CBN to increase the parameters.

Afrinvest Research holds the view that CBN will maintain status quo leaving Monetary Policy Rate (MPR) unchanged at 11.50 percent, Asymmetric corridor around MPR at +100/-700bps, LR at 30 percent and Cash Reserve Ratio (CRR) at 25.50 percent.

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