Analysts are of the opinion that, the Central Bank of Nigeria (CBN)’ Monetary Policy Committee (MPC) is likely to retain the policy parameters as the committee begins its meeting today.
According to them, since the second quarter of 2021 Gross Domestic Product (GDP) performance numbers are yet to be released, the committee members may not have much to work with.
“Although we do not anticipate Committee members to vote unanimously as the case during the May MPC’s meeting, we expect the voting pattern to tilt in favour of retaining policy parameters as the nation awaits the Q2:2021 GDP performance numbers”, said analysts at Afrinvest.
“Based on our analysis of most key considerations for the MPC, we project a retention of all policy parameters at current levels – MPR: 11.5%, Asymmetric Corridor around MPR: +100/-700bps, CR: 27.5%, and LR: 30.0% respectively”, said Afrinvest.
On key global trends since the last MPC meeting in May 2021, sustained economic recovery in both the U.S. and China have been observed. – the two biggest economies in the world and two of Nigeria’s major trading partners.
For instance, the US economy added 850,000 jobs to non-farm employment across different sectors in June 2021, translating to an increase of 52.1 per cent over the 559,000 added in the preceding month. Also, preliminary data from the Chinese National Bureau of Statistics revealed that GDP growth for second quarter of 2021 came in at a record 12.7 per cent, compared to 7.9 per cent reported in first quarter of 2021. This was aided by the strong recovery in