The MPC decided once again, to maintain status quo after 16 months of no change. The arguments for this decision, being that more time is required to ensure that the gains of the current policies are not squandered.
Q3 GDP numbers reveal that apart from the oil and agriculture sectors, most interest rate sensitive sectors shrank and contracted. Annualized credit to the private sector also declined. In other words, the economy minus oil and agriculture is still in recession.
The need for a change in the interest rate policy and direction is now urgent and imperative, if the economic recovery is to be sustained and inclusive.
In the attached slides, B.J Rewane takes a deep dive into the MPC decisions. He calls for an acknowledgment of progress and celebration of success, and not vice versa.