The Central Bank of Nigeria (CBN) has once again deferred the meeting of its Monetary Policy Committee (MPC), leaving investors and analysts in anticipation of Governor Olayemi Cardoso’s approach to the escalating inflation of 27.33% in October 2023.
This is the second time the Cardoso-led CBN will be postponing the MPC meeting since assuming office in September.
Dr. Isa Abdulmumin, the CBN’s Director of Corporate Communications, confirmed the delay, stating that the MPC meeting was not scheduled for this week.
However, AbdulMumin suggested that the decision might be linked to the upcoming Chartered Institute of Bankers of Nigeria dinner, where the CBN governor is expected to present an economic roadmap for Nigeria.
In response to the postponement, economic experts expressed concern, emphasizing the importance of MPC meetings in providing insight into the state of the economy and guiding the public on government policy.
The upcoming MPC decision is highly anticipated, given the recent positive response in consumer prices to money market reforms.
Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprises, urged the urgent reconvening of the MPC to address the lack of communication and provide crucial information about the economy.
He noted that monetary policy communication is vital to guide investors and the public on the government’s policy direction.
Financial firm Cordros Capital predicted a potential 100 basis points increase in the CBN’s Monetary Policy Rate (currently at 18.75%).
It emphasized the rapidly changing monetary policy landscape since the last MPC meeting in July, with efforts made by the central bank, particularly in October, to address issues such as clearing foreign exchange backlog.
Cordros Capital believes that further rate hikes by the MPC would underscore the CBN’s commitment to combating inflation, with expectations of a peak at 28.02% year-on-year in December.