By Barnabas Esiet.
The Central Bank of Nigeria (CBN) has announced a new date for the 299th meeting of its Monetary Policy Committee (MPC), which was initially scheduled for February 17 and 18, 2025.
The meeting will now take place on Wednesday, February 19 and Thursday, February 20, 2025.
This development puts an end to speculations surrounding the meeting’s date, which arose due to delays by the National Bureau of Statistics (NBS) in releasing the rebased Consumer Price Index (CPI).
With a new date confirmed, economic experts are eagerly awaiting the MPC’s decision on whether to hold or hike the monetary policy rate (MPR), given current economic trends.
The MPC plays a crucial role in shaping Nigeria’s economic policies, and its decisions have a significant impact on the country’s inflation rate, interest rates, and overall economic growth.
The committee’s meeting comes at a time when Nigeria is facing significant economic challenges, including high inflation, a large trade deficit, and a struggling manufacturing sector.
Recent statements by MPC members have highlighted the need for fiscal prudence and monetary policy coordination to address these challenges.
Murtala Sabo Sagagi, an MPC member, emphasized the importance of aligning monetary and fiscal policies to stabilize inflation and the exchange rate.
He also stressed the need for the government to reduce its spending and prioritize capital investments to enhance productivity and economic resilience.
Another MPC member, Philip Ikeazor, advocated for a more aggressive approach to curb inflationary pressures, suggesting a 50-basis-point increase in the MPR.
He attributed the persistence of high inflation to frequent fiscal injections by sub-national governments and emphasized the need for decisive action to restore macroeconomic stability and investor confidence.
The CBN’s decision to reschedule the MPC meeting may be seen as a strategic move to allow for more time to assess the current economic situation and make informed policy decisions.
The meeting’s outcome will be closely watched by economic experts, investors, and stakeholders, as it will provide valuable insights into the CBN’s monetary policy direction and its implications for Nigeria’s economic growth and development.
In the meantime, economic experts are speculating about the possible outcomes of the MPC meeting. Some predict that the committee may maintain the current MPR, given the existing economic challenges and the need to support economic growth.
Others suggest that the MPC may opt for a moderate increase in the MPR to curb inflationary pressures and stabilize the exchange rate.
As the MPC meeting approaches, all eyes are on the CBN to provide guidance on Nigeria’s monetary policy direction. The meeting’s outcome will have significant implications for the country’s economic growth, inflation rate, and overall economic stability.
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