A cross section of economic analysts including money and capital market players have thrown their weights behind the Monetary Policy Committee of the Central Bank of Nigeria for resolving to retain MPR at 14.0 percent alongside all other policy parameters at status quo.
The MPC rose from its 254th statutory meeting (the first for this year) on Tuesday and issued a communiqué in which it stated its decision to retain the headline interest rate as it is. In arriving at the decision, the Committee said it assessed the relevant risks to the global and domestic economy against the backdrop of increased uncertainty arising from political and economic developments around the world.
The Chairman of Council and President of Chartered Institute of Stockbrokers (CIS), Mr Seyi Abe told NEWSVERGE that leaving the rates at status quo is in order.
According to him, “This is what happens when you don’t have enough tools to decide and therefore continue to monitor developments both internally and externally to see what changes can induce counter reactions from within.”
Another economic analyst and insurance broker, Mr Andrew Ajibola Biosah also agreed that the resolution is in line with global practices. Biosah who is also a Principal Partner at Utopia Insurance Limited opined that considering the importance of price stability, and being mindful of the limitations of monetary policy in influencing output and employment under conditions of stagflation, and economic recession is in the best interest of the country.
Furthermore, he urged the government to play more in the agricultural sector as it is expected to play a bigger role in driving growth. He also encouraged the expansion of the Anchor Borrowers Program, as well as other developmental initiatives of the Government. Biosah is also agreed with the position of the committee that prospects for moderation of price developments appear to be strengthening on the heels of positive developments in the food sub-sector.
The 10 member Monetary Policy Committee all of whom were in attendance voted to:
(i) Retain the MPR at 14 per cent;
(ii) Retain the CRR at 22.5 per cent;
(iii) Retain the Liquidity Ratio at 30.00 per cent; and
(iv) Retain the Asymmetric Winddow at +200 and -500 basis points.