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Godwin Emefiele

CBN’s Monetary Policy Committee Meets Today

The Central Bank of Nigeria will commence the 244th session of the bi-monthly Monetary Policy Committee (MPC) today, the last to be held under President Goodluck Jonathan whose tenure runs out May 29.

Sam Diala

The 244th edition of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) commences today to be presided over by the CBN Governor, Mr Godwin Emefiele.

The 2-day event which holds at the corporate headquarters of the apex bank will consider critical monetary policy issues that impact on the economy in the year and since the last MPC seating two months’ ago.

Analysts consider the meeting very crucial as it will prepare grounds for the monetary and fiscal policy strategies of the incoming administration. It will also be the last to be held in the administration of President Goodluck Jonathan whose tenure expires May 29.

While some key monetary policy fundamentals are likely to be retained, analysts maintain that the meeting will make far-reaching recommendations relating to the management of the nation’s foreign exchange market, reserves, inflation and interest rates. It is also coming on the heels of rising inflation.

The April inflation report by the Nigerian Bureau of Statistics showed that Consumer Price Index (CPI) rose to 8.7 per cent (y-o-y) or 0.2 per cent points from the 8.5 per cent recorded in March.

According to Futureview Financial Services, this is the fifth consecutive month of a faster increase in the Headline index to reach the highest inflation rate recorded for the year.

The Headline rate for April also equals the highest rate recorded since July 2013. The faster pace of the Headline index was as a result of increases in most Classification of Individual Consumption according to Purpose (COICOP) Divisions which contribute to the Headline index, with the exception of slower increases in Recreation and Culture, and Communications Divisions. A faster pace of increase was also observed in the Food and Core sub-indices.

Despite tight regulatory measures taken by the apex bank to strengthen the Naira, the local currency has continued to suffer tremendous hemorrhage as it has continued to lose weight since November 18, when the CBN officially devalued the Naira by 8.3 per cent.

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