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The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), which will meet today and tomorrow, will not change existing key rates, The Nation learned . The committee will take steps to ensure that more foreign capital enters the economy to verify the reversal of capital flows in the run-up to the 2019 elections.
A report from the Economic Intelligence Unit, Access Bank Plc, indicates that the committee will maintain the rate of monetary policy – benchmark interest rate of 14%, given the effect of expansion budgetary expenditure following the signing of the 2018 budget. The Committee will also maintain the cash reserve (CRR) at 22.5%; Liquidity ratio at 30% and maintenance of the exchange rate policy which stabilized and strengthened the liquidity of the market.
Similarly, badysts at Afrinvest Limited, an investment and research firm, said the MBM must maintain a delicate balance between growth and price. We believe that the Committee will maintain the status quo on all key rates in order to avoid upsetting the current economic dynamic, they said, adding:
"Our position is based on a balance factors highlighted by a careful badysis of the positive conditions prevailing in global commodity markets, alongside emerging market risks and continued disinflation in a context of steady but weak growth. "
They said that 39, here the minutes of the May 2018 meeting, members continue to closely monitor the evolution of global markets for financial products and commodities, taking into account the link with Nigeria's external position. Since the last meeting, mixed feelings have prevailed. In commodity markets, oil prices remained favorable, slightly lower at $ 73 / barrel, compared with $ 80 / barrel since the beginning of the year, with OPEC and its allies, parties to the Declining production agreement, agreeing to re. Saudi Arabia and Russia, with excess production capacity, should be the main beneficiaries of this decision, which should lead to a slight downward correction of world oil prices. Nevertheless, we believe that conditions will continue to favor Nigeria's fiscal and external balance positions. In the same vein, foreign capital flows have continued unabated in emerging markets, but with a reduced impact on Nigerian badets, "they said. Is slightly moderated by 0.6% to 47.4 billion dollars against 47.7 billion dollars at the May meeting of the MPC due to the rise in the national currency, the exchange rate of the naira s 39 stabilized at US $ 305.85 / US $ 1.00 The increase in foreign exchange demand was supported by the improvement in domestic oil production, with a daily output of 1.7 million barrels per day, "he adds
parallel markets, backed by stable foreign exchange reserves that supported CBN's intervention in the context of the exit of portfolio investors.
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