Again, CBN postpones MPC meeting

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Central Bank of Nigeria (CBN) has postponed its Monetary Policy Committee (MPC) meeting again, making it the second time the apex bank will take such a decision since Yemi Cardoso became the Governor.

The CBN’s calendar slates the 294th MPC meeting for between November 20 and November 21, 2023.

Reacting to the development, Professor Uchenna Uwaleke, Director, Institute of Capital Market Studies, Nasarawa State University Keffi said the postponement of the Monetary Policy Committee (MPC) meeting for the second consecutive time could be a blessing in disguise in the sense that if the meeting had held in September, it was most likely the Monetary Policy Rate (MPR) would have been jerked up thereby further increasing the cost of doing business and reducing access to credit.

Dr. Isa Abdulmumin, Director of Corporate Communications of the CBN has been quoted as saying that the crucial meeting will not hold this week as scheduled, and linked the postponement to the forthcoming 60th anniversary of the Chartered Institute of Bankers (CIBN) planned to hold on November 24, 2023.

He said, “MPC is not holding this week. All roads lead to the 2023 CIBN annual dinner slated for Friday, 24th”.

The apex bank had in September, under its new Governor shelved the 293rd Monetary Policy Committee meeting indefinitely.

At that time, Abdulimumin in a statement, had said a new date would be communicated in due time but did not provide reasons for the postponement.

During its last meeting held in July, the MPC raised its benchmark interest rates by 25 basis points to 18.75 percent.

The latest postponement comes amid a burgeoning inflation rate put at 27.33 percent, which the CBN has reassured that it’s poised to maintain price stability.

The Monetary Policy Committee of the CBN is the highest policy-making body of the bank set up to review economic and financial conditions in the economy and prescribes appropriate policy stances in the short to medium term.

It is also saddled with the responsibility of reviewing the CBN monetary policy framework and adopting necessary changes when the need arises.

The MPC’s meeting is very important in moderating interest rates in the system in order to achieve the price stability functions of the CBN to curb the persistent rise in inflation rates.

Professor Uwaleke said, “The postponement of the MPC for the second consecutive time could be a blessing in disguise in the sense that if the MPC had held in September, it was most likely the MPR would have been jerked up thereby further increasing the cost of doing business and reducing access to credit.

“This would have been the outcome of the meeting against the backdrop of the pressure by the IMF for an MPR hike to reduce money supply which would not have had any significant impact on the rising inflation”.

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