MasterwebNews 21/3/16 - As Nigeria`s MPC Convenes today, Analysts Say `Nothing Will Change`

[ Masterweb Reports: Busayo Samuel reports ] - As the Monetary Policy Committee of the Central Bank of Nigeria begins its 249th meeting today to decide on the direction of Nigeria’s monetary policy, analysts say there is not likely to be a change in the current status.

 

According to the Economic Intelligent Unit of Access Bank Plc, the Committee is likely to retain Monetary Policy Rate at 11 percent, leaving the asymmetric corridor of +200 basis points and -700 basis unchanged: “The Central Bank of Nigeria has made it clear that it will tolerate above target inflation in aid of keeping monetary conditions relatively loose in support of the economy”.

 

The Access Bank Analysts predict retention of Cash Reserve Ratio at 20 percent and Liquidity Ratio at 30 percent.

 

“We anticipate no change in the FX policy stance by the CBN. Latest indications on the FX policy front are that the Trade and Investment ministry and the CBN are in discussions over ways to ensure supply of FX to the manufacturing sector”, the Analysts said.

 

The bank’s analysts said their predictions are based on analysis of international and domestic economic developments.

 

*Photo Caption - Godwin Emefiele, Central Bank of Nigeria Governor

 
html add here