Critical economic decisions put on hold as CBN postpones MPC meeting

THE Central Bank of Nigeria (CBN) has indefinitely postponed the Monetary Policy Committee (MPC) meeting for September, putting on hold its bi-monthly statutory function used to consider, recommend and take critical economic decisions.


The apex bank announced this in a statement released on Thursday, September 21 and signed by its director of corporate Communications, Abdulmumin Isa.

In the statement, ‘CBN Defers September 2023 MPC,’ the apex bank gave no reason for the postponement. Still, it may not be unconnected with the “thorough housecleaning” happening at the CBN.

“The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has deferred its 293 meeting scheduled for Monday and Tuesday, September 25 and 26, 2023, respectively.

“A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public,” the statement read in full.

The apex bank uses the MPC meeting to address major economic issues by considering global and domestic developments.

The MPC is the highest policy-making committee of the CBN and has the mandate to review economic and financial conditions in the economy.

It determines appropriate policy stance in the short to medium term, regularly checks the CBN monetary policy framework and adopts changes when necessary.

It also communicates monetary and financial policy decisions effectively to the public and ensures the credibility of the monetary policy transmission mechanism model.

The MPC meets bi-monthly, except otherwise, in the event of an emergency.

The MPC, scheduled for next week, Monday and Tuesday, September 25 and  26, would have allowed the apex bank to rein in inflation by raising, loosening or holding the monetary policy rate.

At its meeting in July, the CBN raised the benchmark rate (MPR) by 25 basis points to 18.75 per cent and adjusted the asymmetric corridor around the MPR to +100-300.




     

     

    It retained the cash reserve ratio, which determines how banks price their loans to customers, at 32.5 per cent at the two-day MPC meeting chaired by the acting governor, Folashodun Shonubi.

    President Bola Tinubu has, on September 16, appointed a new CBN governor and deputy governors, all awaiting the Senate’s confirmation.

    Tinubu named Yemi Cardoso the new CBN governor and Sani Ahmad Dattijo, Emem Nnana Usoro, Philip Ikeazor, and Bala Bello deputy governors, respectively.

    the cash reserve ratio, which determines how banks price their loans to customers, at 32.5 per cent at the two-day MPC meeting chaired by the acting governor, Folashodun Shonubi.

    President Bola Tinubu has, on September 16, appointed a new CBN governor and deputy governors, all awaiting the Senate’s confirmation.

    Tinubu named Yemi Cardoso the new CBN governor and Sani Ahmad Dattijo, Emem Nnana Usoro, Philip Ikeazor, and Bala Bello deputy governors, respectively.

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