Naira to Dollar Exchange Rate, Inflation in Focus As CBN Announces September Date for MPC Meeting

• The Central Bank of Nigeria has announced the date for its next monetary policy committee meeting in September
• At the meeting, the CBN will evaluate the country's financial and economic situation, with a focus on the depreciation of the naira and inflation
• The naira has been experiencing its worst performance since February 2024, and the CBN will be hoping to find a solution

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has confirmed that its next Monetary Policy Committee (MPC) meeting will be held on Monday, September 23 and Tuesday, 24, 2024, at its headquarters in Abuja.

At the meeting, the apex bank will review the country’s economic and financial conditions and determine the appropriate direction for inflation and the naira performance in the foreign exchange markets.

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The statement reads:

“This is to inform you that the 297th meeting of the Monetary Policy Committee is scheduled to be held as indicated: Day 1: Monday, September 23, 2024 Time: 10:00 am. Day 2: Tuesday, September 24, 2024 Time: 8:00 am.”

What is MPC?

The Monetary Policy Committee (MPC) is the highest decision-making body of the Central Bank of Nigeria (CBN). It is responsible for formulating policies to maintain price stability, support sustainable economic growth, and manage inflation.

The MPC’s key functions include determining interest rates- Monetary Policy Rates MPR), setting inflation targets, and developing strategies to stabilise the currency.

The committee meets regularly to assess Nigeria's economic and financial conditions and make decisions that guide the country's monetary policy framework.

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Decisions of MPC

In recent meetings, the CBN increased the MPR and interest rates as part of its efforts to combat rising inflation.

There are expectations that the September meeting will be different.

Expert expectations

Lagos-based economist Kelvin Umeni told Legit.ng that he does not expect the CBN to keep the interest rate unchanged.

"The interest rate is already very high. I don't expect the CBN to make any changes. And with the high inflation rate, I am also not expecting a reduction from the current rate of 26.25%"

Also, Analysts at Cordros Capital Limited expect the MPC to maintain existing rates in line with the recent decline in headline inflation.

The firm in a note ahead of the meeting, made available to Legit.ng reads:

“We think the Monetary Policy Committee faces a pivotal decision – either maintain current rates to allow previous hikes to fully impact the economy or continue rate increases to reinforce gains from prior adjustments owing to the elevated inflation risks exacerbated by the recent rise in PMS price.

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“Our baseline expectation is for the MPC to adopt a “HOLD” stance in the forthcoming meeting, as we expect the committee to refer to the recent decline in headline inflation, even as inflation risks are now strongly tilted to the upside.”

CBN releases interest rates on customers' accounts

Legit.ng previously reported that Deposit Money banks (DMBs) increased their interest rates on deposits to reflect the latest Monetary Policy Rate announced by the Central Bank of Nigeria.

The CBN raised the Monetary Policy Rate (MPR) to 24.75% in May 2024 from 22.75% in February 2024.

Checks showed that 18 Nigerian banks now offer their customers at least 7.88% interest on their deposits as of June 28, 2024.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng