Post MPC – JULY 2020

Dear Subscriber,

CBN keeps rates the same

The MPC kept interest rates and monetary policy parameters unchanged at its one-day meeting yesterday. The outcome was no surprise as the options were limited and actions predictable.

The Nigerian apex bank is grappling with how to evolve an orderly exchange rate adjustment mechanism for a currency market that is highly segmented and fast becoming a speculators paradise. It has also been able to persuade banks to increase total credit to the economy by 21.47% to N18.9trn.

The CBN was more candid about the economic recovery prospects this time. It accepts that a U-shaped recovery is more likely and that 2020 will be a negative growth year.

In the slides, Bismarck Rewane discusses the MPC outcome on Channels TV news at 10 pm segment.

Do enjoy your read…