• About
  • Advertise
  • Our Privacy Policy
  • Contact
Friday, July 18, 2025
No Result
View All Result
  • Login
  • Register
MetrowatchXtra
  • WORLD
  • BUSINESS
  • POLITICS
  • HEALTH
  • SPORTS
  • OP-ED
  • ENTERTAINMENT
  • WORLD
  • BUSINESS
  • POLITICS
  • HEALTH
  • SPORTS
  • OP-ED
  • ENTERTAINMENT
No Result
View All Result
MetrowatchXtra
No Result
View All Result
Home BUSINESS

How Economists See CBN MPC Decision

MetrowatchXtra by MetrowatchXtra
November 23, 2021
0 0
0
*The Central Bank of Nigeria (CBN) logo

*The Central Bank of Nigeria (CBN) logo

 

By Lydia Ngwakwe

 

Economists on Tuesday expressed their views on the Central Bank of Nigeria Monetary Policy Committee (MPC) decision to hold the Monetary Policy Rate (MPR) at  11.5 per cent, and all other parameters constant.

 

They spoke in separate interviews with the News Agency of Nigeria (NAN) in Lagos.

 

The MPC, at its 282nd meeting, had again voted to hold MPR at 11.5 per cent.

 

Reading a communiqué after the committee’s meeting on Tuesday, Mr Godwin Emefiele, the CBN Governor, said the MPC also unanimously agreed to hold all other monetary policy parameters constant.

 

The Asymmetric Corridor was thus retained at +100 and -700 basis points around the MPR, the Cash Reserved Ratio (CRR) at 27.5 per cent and the Liquidity Ratio at 30 per cent.

 

Emefiele said the parameters were retained to sustain the growth of the economy.

 

Prof. Akpan Ekpo, Chairman, Foundation for Economic Research and Training, Lagos, said the MPC decision met his expectations.

 

“Inflation is trending downwards, hence, no need to increase the MPR. The high food inflation rate is mainly due to decreased production as a result of insecurity.

READ ALSO  Economists Fault Plan to Occupy CBN

 

“Nonetheless, the huge amount of intervention in almost all sectors seems not to have the desired impact – why? Economic agents are complaining of access to the various intervention funds.

 

“Also, the MPC would have reaffirmed its policy of managed float regarding its foreign exchange rate regime to counter the IMF position of a market clearing exchange rate.

 

“I am glad that the MPC reaffirms the need for fiscal and investment policies to continue to drive recovery. This would support monetary policy and accelerate job creating growth,” Ekpo said.

 

Uche Uwaleke, Professor of Finance and Capital market, Nasarawa State University, Keffi, also said the committee’s decision met his expectations.

 

“That was the right decision in view of the prevailing circumstances. The twin challenge of fragile economic growth and high inflation rate makes further tightening or loosening of monetary policy undesirable,” he said.

 

Sheriffdeen Tella, a Professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun State said that he was not expecting any change in any of the parameters.

 

“I wasn’t expecting any change in any of the parameters because nothing serious has changed in terms of macroeconomic fundamentals.

READ ALSO  NIM Elects New President, Other Principal Officers

 

“However, I would have liked to see the MPR reduced as signal for fall in cost of borrowing to encourage investors, particularly with massive depreciation of the naira which has pushed up cost of importation of raw materials and spare parts of industrial inputs,” he said.

 

The Director, Centre for Economic Policy Analysis and Research (CEPAR), Prof. Ndubuisi Nwokoma, however, did not see the committee’s decision meeting his expectations.

 

“I guess the Committee is satisfied that with inflation under containment as shown in the latest NBS figures, that growth can be sustained with the current level of the MPR and other indicators.

 

” Yes, the issue of exchange rate is very critical but it appears the forces at work in the foreign exchange market may go beyond economics.

 

“That is probably why round tripping has been difficult to manage, given the wide margin between the official and the parallel market rates.

 

”The MPC, in my opinion, may find it difficult to make significant difference here,” he said.

 

(NAN)

Tags: CBNEconomistsMPC
MetrowatchXtra

MetrowatchXtra

RELATED POST

CBN Launches DocFlow, MDA Naira Payment Solutions
Latest News

CBN Clarifies Non-Resident BVN Charges for Diaspora Nigerians

by Kemi Sheriepha
July 7, 2025
0

Nigeria's Central Bank of Nigeria (CBN) has reacted to rumours surrounding the newly introduced Non-Resident Bank Verification Number (NRBVN) platform....

Read moreDetails
Crypto ban: CBN fines Banks N800mn for Concealing Customers’ Deals

Nigeria’s Economic Reforms Win IMF Praise ‘Amid Signs of Durable Recovery’

July 3, 2025
Zenith Bank to Exit CBN’s Regulatory Forbearance by 30th June, Assures Shareholders of Continued Dividend Payout

Zenith Bank to Exit CBN’s Regulatory Forbearance by 30th June, Assures Shareholders of Continued Dividend Payout

June 20, 2025
CBN Launches DocFlow, MDA Naira Payment Solutions

CBN Affirms Strength of Banking Sector, Issues Routine Transitional Guidance for Select Institutions

June 18, 2025
CBN Launches DocFlow, MDA Naira Payment Solutions

Cardoso Named African Banker Central Bank Governor of the Year

May 31, 2025
Crypto ban: CBN fines Banks N800mn for Concealing Customers’ Deals

Disclose Any Payment to Councils, Explain Why Rivers LGs Are Paid’, SERAP Tells CBN

May 11, 2025
Load More

APO

Recent Posts

  • Special FEC: Tinubu Renames UNIMAID after Late Muhammadu Buhari
  • Defence Headquarters Reacts to Turkish Ambassador’s Claim That FETO Terrorists are Active in Nigeria
  • Anambra Guber: INEC Extends CVR, Provides Detailed Update on Governorship Election
  • Police Reveals How Landlord Planned Kidnap, Murder of 2 Ondo University Students 
  • TMSG Lauds Tinubu over ‘Befitting State Burial’ for Buhari

Recommended

Army Arrests Suspected Killer of FUNAAB Student Kidnapped in Lagos

Army Arrests Suspected Killer of FUNAAB Student Kidnapped in Lagos

11 months ago
PDP logo

Presidential Primaries Loading! PDP Holds NEC Meeting on Wednesday

3 years ago
MetrowatchXtra

MetrowatchXtra is an online daily newspaper poised to act as a catalyst in our debate and desire for well-governed Nigeria and provide the much-needed platform for all, irrespective of social, religious or political divide, to express their views.
Metrowatchxtra Nigeria

  • About
  • Advertise
  • Our Privacy Policy
  • Contact

© 2024 Metrowatchxtra Nigeria Published by Miraculous Media Connect Limited. All rights reserved

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Politics
  • World
  • Business
  • Science
  • Entertainment
  • Sports
  • Tech
  • Health

© 2024 Metrowatchxtra Nigeria Published by Miraculous Media Connect Limited. All rights reserved