Dear Subscriber,

The MPC in a surprise move eased interest rates by 50bps to 13.5%pa. It however failed to reduce the cash reserve requirement (CRR: 22.5%) nor its aggressive intervention in the Open Market Securities market. Its action was explained as a signaling of intents to the markets and economic agents. This is the first change in the rate in 33 months.

The implications of this move is that the impact of the rate cut on growth and asset prices will be muted in the short term but points to further rate cuts down the road.

In the attached bulletin, the FDC Think-Tank analyses the implications of the MPC’s decision on the economy.

Do enjoy your read…