MPC meet concludes with status-quo   

July 21 (Lagos) - The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) concluded its fourth monetary policy meeting of 2020 today, maintaining all key rates. Please see below, a summary of the committee’s decisions.  


-          Retain MPR at 12.50%

-          Retain CRR at 27.5%

-          Retain Liquidity ratio at 30%

-          Maintain an asymmetric corridor at +200/–500 basis points around the MPR.

In our opinion these MPC meets are no longer relevant because the independence of the CBN is suspect. Their MPR rate is below Inflation which rose to 12.56 last month. At the same time the 365 day t-bills are yielding 3.35% which is good for the FG but sad news for investors. The Naira devaluation talk does not come to an end even after a devaluation. 

In the middle of all this CBN is looking like a puppet institution holding these MPC meets where they do not take any relevant decisions to steer the economy away from this road which is running towards another recession. They are probably still waiting to hear from the ogas on top before they can make a decision that will affect millions. 

They should have acted today but did nothing. The world will wait for the next MPC meet now while they decide to do the obvious. 

reporting for on Monday, July 21 2020 from Lagos, Nigeria
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