MPC meeting: CBN may retain MPR at 26.5% — CIBN
The Chartered Institute of Bankers of Nigeria (CIBN) has projected that the Central Bank of Nigeria (CBN) will retain the Monetary Policy Rate (MPR) at 26.5 per cent.
The projection comes as the Monetary Policy Committee (MPC) begins its 306th meeting in Abuja on Monday.
Dr. Dele Alabi, President and Chairman of the Council of CIBN, shared this projection during an interview with newsmen in Lagos on Saturday.
Alabi explained that the expectation is based on the CBN’s inflation-targeting monetary policy framework and recent economic developments.
According to him, inflation has neither increased significantly nor declined sufficiently in recent months to justify reducing the benchmark interest rate.
“I expect the MPC to keep the interest rate constant and monitor developments over the next couple of months before considering any adjustment,” he said.
Alabi noted that retaining the current policy stance would allow the apex bank to assess evolving inflationary pressures and broader economic conditions.
This approach will enable the CBN to make informed decisions before introducing further adjustments to its monetary policy stance.
The CBN retained the MPR at 26.5 per cent during its last meeting, continuing efforts to contain inflation and support macroeconomic stability.
Also speaking with newsmen, Prof. Akpan Ekpo, an economist and former member of the CBN’s MPC, advised the committee to retain the policy rate.
Ekpo stated that global uncertainties, including tensions involving the United States and Iran, could push up crude oil prices and intensify inflationary pressures.
He added, however, that such developments are likely to be temporary and should not warrant an increase in interest rates.
The economist urged the MPC to maintain the current policy rate while closely monitoring domestic and global economic trends.
Ekpo also advised the Federal Government to increase investment in productive sectors to strengthen economic growth and improve overall stability.