MPC Pursues Output Growth, Cuts MPR by 100bps to 11.50%

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

Free 250,000 FG/CAC Business Names Registration for MSMES

Business formalisation Support of the Micro, Small & Medium Enterprises (MSMEs) Survival Fund As part of Federal Government’s post-Covid-19 Pandemic...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...
- Advertisement -

The Monetary Policy Committee (MPC) at the end of its meeting on Tuesday, September 22, 2020, voted to reduce the Monetary Policy Rate (MPR) by 100bps to 11.50% despite the rising inflation rate which rose to 13.22% in August 2020. Also, it adjusted the asymmetric corridor from +200 bps and -500 bps to +100 bps and -700 bps around the MPR.

According to the Committee, the lingering uncertainty associated with COVID-19 pandemic weakened aggregate demand. It also noted that investors are still cautious given the possibility of a second-round of lockdown.

The MPC, in line with our thought which we expressed in our Cowry Weekly Report dated Friday, September 18, 2020, stated that the recent uptick in inflation was chiefly due to structural factors, such as inadequate state of critical infrastructure and broad-based insecurity challenges across the country, as well as the exchange rate adjustment.

In addition to the above conditions currently driving inflation northwards, the Committee expects that the recent increase in energy cost would further impact domestic price level in the short-term.

The Monetary Authority, in the wake of COVID-19 pandemic, had disbursed funds worth N3.5 trillion, particularly to the manufacturing, health care, agriculture and power sectors, in order to reinflate the economy.

Read Also:  MPC Maintains Accommodative Stance…Cuts MPR to 12.50%
- Advertisement -

Hence, amid the need to continue to support the fiscal authority to stimulate growth, increase aggregate demand and dampen prices in the immediate future, the Monetary Policy Committee decided to:

  • Reduced Monetary Policy Rate to 11.50% from 12.50%
  • Adjust asymmetric band from +200 bps and – 500 bps to +100 bps and -700 bps around MPR.
  • Retained Cash Reserve Ratio at 27.50%
  • Retained Liquidity Ratio at 30%

COWRY ASSET

- Advertisement -
MPC Pursues Output Growth, Cuts MPR by 100bps to 11.50% - Brand SpurMPC Pursues Output Growth, Cuts MPR by 100bps to 11.50% - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  NSE: Frequently Asked Questions on Order Handling and Best Execution

This site uses Akismet to reduce spam. Learn how your comment data is processed.

MPC Pursues Output Growth, Cuts MPR by 100bps to 11.50% - Brand SpurMPC Pursues Output Growth, Cuts MPR by 100bps to 11.50% - Brand Spur

Latest News

Old Wine, New Bottle Theoretical Analysis of Nigeria’s 2021 Federal Budget Proposal

What can be made of a federal budget that hasn’t changed to fit the realities of the nation and...

Top 10 Protein-Rich Foods

Protein is an essential building block of life. It is found in literally every cell of the body. Protein is an important nutrient needed for...

Will the stock market rally be sustained?

Earlier, we hinted that the stock market is clearly the only game in town, thanks to the low yield environment. Thus, we urged reluctant...

Digital Therapeutics and Wellness App Users to Reach 1.4 Billion Globally by 2025, as Pandemic Accelerates Regulatory Acceptance

A new study from Juniper Research has found that the number of people using digital therapeutics and wellness apps will grow from 627 million in 2020...

Hazard, Kepa, Messi Lost €142 Million in Combined Market Value, Three Biggest Drops in 2020

The COVID-19 outbreak has had an enormous impact on the football industry, causing considerable drops in clubs’ revenues and their players’ market value. According to...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -MPC Pursues Output Growth, Cuts MPR by 100bps to 11.50% - Brand SpurMPC Pursues Output Growth, Cuts MPR by 100bps to 11.50% - Brand Spur