The MPC agreed unanimously to keep the Monetary Policy rate at 13.5%p.a. and all other parameters unchanged.
The CBN maintained this stance in view of the balance of risks tilting to the upside especially the vulnerability of the economy to inflationary pressures. The CBN indicated in its guidance that it was using financial instruments and guidelines to persuade banks to increase their lending especially in the SME space.
It also did indicate a preference for protectionist forex restrictions to encourage domestic import substitution especially backward integration in the dairy business.
In the presentation, Bismarck Rewane shares the views of the FDC Think Tank on the CBN’s position on the monetary policy standstill.
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