Connect with us

BUSINESS

Expert suggests change in rates as CBN holds 2-day MPC meeting

Published

on

A Financial Expert, Okechukwu Unegbu, has urged the Central Bank of Nigeria (CBN) to ensure a complete review in all the rates in Monetary Policy Rates.

Unegbu gave the advice ahead of the CBN two-day Monetary Policy Committee (MPC) meeting for July on Monday.

Our correspondent reports that the apex bank and increased the Monetary Policy Rate (MPR) from 11.5 to 13 per cent in the last MPC meeting in May, the first change after over two years.

It, however, held all other parameters constant.

Unegbu said that heightening inflation and other economic challenges required the CBN to take all-encompassing look at the rates to meet with global economic trend.

Meanwhile, analysts from Afrinvest Limited projected that the MPC would maintain the MPR at its July meeting.

According to the analysts, the increase in the MPR in May failed to have an immediate impact on inflation due to weak and delayed transmission mechanism of monetary policy.

“We believe the MPC will retain status-quo on MPR.

“Our hold-steady outlook is premised on the expectation that the committee will prefer to give more time to assess the impact of the last policy change,” they said.

According to analysts from Cowry Assets Management Limited, global macro-economic stability is now under threat from inflation.

“Thus the policy changes in responding to it will have substantial repercussions across emerging and frontier markets economies.

“”However, we see the acceleration in the inflation numbers in June offering policy makers limited room to maneuver rates.

“Thus, we project the July inflation to further accelerate to 18.90 per cent,” they said.

legit.ng

Kadiri Abdulrahman

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective. A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour. The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.

Comments
JoinOurWhatsAppChannel

Website Designed By DEBORIAN.COM, a Nigerian Web Designer and Web Developer -