Post MPC Meeting Report - MPC's Hawkish Streak Maintained
During the 291st Monetary Policy Committee (MPC) meeting conducted on the 23rd and 24th of May 2023, the Central Bank of Nigeria (CBN) firmly reiterated its hawkish agenda by raising the Monetary Policy Rate (MPR) by an additional 50bps to 18.50%, further digging its heel deep into its hawkish stance. This marks the seventh (7th) consecutive MPR hike since May 2022.
After careful deliberation, the committee reached a unanimous decision to address the ongoing upward trajectory of inflation and promote sustainable growth amidst prevailing global and domestic challenges. Tightening the Monetary Policy Rate (MPR) was identified as the most effective course of action. Out of the eleven (11) committee members present, ten (10) voted in favor of a 50bps increase, while one (1) member advocated for a 25bps hike. Nevertheless, all members concurred on maintaining the unchanged status of all other parameters.
Summarily, the committee decided to:
- Raise MPR by 50bps to 18.50%
- Keep asymmetric corridor at +100/-700 basis points around the MPR
- Retain CRR at 32.50%
- Maintain the Liquidity Ratio at 30.00%
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