MPC Leaves All Rates Unchanged

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...

FG, States, LGAs share N528.39bn FAAC allocation in Jan 2021

The Federation Account Allocation Committee (FAAC) disbursed the sum of N619.34bn to the three tiers of government in December...

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 -

In line with our inhouse expectation, the MPC meeting ended today with a neutral outcome as the members of the committee voted unanimously to leave all policy rates unchanged.

Notably, the Monetary Policy Rate (MPR) was left at 11.5% as the equally important asymmetric corridor around the MPR, the Cash Reserve Ration, and Liquidity Ration were left at +100/-700bps, 27.5%, and 30.0%, respectively.

Comments and Outlook

We note that the above stance of the monetary policy committee is in spite of the recent Q3-2020 GDP report where output growth fell by -3.6% YoY but grew by 248bps QoQ from -6.1% in Q2-2020. A growth figure that can be viewed as some positive outcome of the efforts of the Apex bank aimed at limiting the impact of the pandemic on the economy.

mpc leaves all rates unchanged Brandspurng
Governor, CBN, Godwin Emefiele | www.brandspurng.com

Maybe a rate cut could have signalled the apex bank’s willingness to support the economy out of the current crisis. Furthermore, the Apex bank emphasized that the value of Naira is only determined by the forces of demand in the Nigeria Autonomous Foreign Exchange Market as opposed to the forces of demand and supply influenced by speculators in the parallel market.

Read Also:  These Companies will be paying dividends this week
- Advertisement -

Given the outcome of the meeting, we expect the low yield environment to persist in the fixed income market with sustained interest for equities as dividend yields on tier 1 banks remain relatively competitive.

- Advertisement -
MPC Leaves All Rates Unchanged - Brand SpurMPC Leaves All Rates Unchanged - Brand Spur
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

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

MPC Leaves All Rates Unchanged - Brand SpurMPC Leaves All Rates Unchanged - Brand Spur

Latest News

IITA, Key Partner For Promoting Agriculture As A Business For Smallholder Farmers

As part of the PICAGL project implementation funded by the World Bank through the Congolese government, IITA hosted an...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -MPC Leaves All Rates Unchanged - Brand SpurMPC Leaves All Rates Unchanged - Brand Spur