24 July 2018 ( Lagos ) : The Monetary Policy Committee (MPC) of the Central Bank of Nigeria is expected to conclude its mid-year meeting today. Analysts expect the committee to leave all policy levers unchanged for the eighth consecutive time whilst possibly striking a hawkish tone. Analysts believe one of the major considerations of the MPC would be the rising threat from capital reversals amidst the tighter monetary policy path by the United States Federal Reserve (projecting two more rate hikes in 2018).
Also, despite signs of a slowing economic recovery and an impressive moderation in inflation so far this year, the committee is unlikely to tinker with the anchor borrowing rate at this meeting given an expected uptick in inflationary pressures in Q4’18 even as arguments about the efficacy of monetary easing to support private sector credit growth appears quite untenable at this time. Overall, analysts predict a HOLD verdict at the end of the two-day meeting.
Reporting for EasyKobo on Tuesday, 24 July 2018 in Lagos, Nigeria
Source: Vetiva Capital Management Limited