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CBN fixes next MPC meeting for March 25 and 26  

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The Monetary Policy Committee of the CBN will meet for the second time this year on the 25th and 26th of March 2024. This was announced in a notice on the CBN website assessed by ThePressNG. 

The 294th MPC meeting is coming exactly one month after the previous MPC meeting which held on February 26 and 27.

During that meeting, the committee voted to hike interest rates by 400 basis points, taking the Monetary Policy Rate from 18.75% to 22.75%.  

Other decisions taken during the last MPC meeting include adjusting the asymmetric corridor around the MPR to +100/-700 from +100/-300 basis points. And raising the Cash Reserve Ratio from 32.5% to 45.0%.  

Despite the MPR hike, Nigeria’s inflation rate for February 2024 hit a new high of 31.70%, while month-on-month, the headline inflation figure increased to 3.12%.  

What you should know  

With inflation failing to slow down in February 2024 after the MPC’s meeting, it remains to be seen if the MPC will hold rates or there will be further hikes.

However, based on personal statements from the last MPC meeting, there was a consensus by members of the committee to hike rates.  

According to the personal statements by some of the committee members, excess liquidity (money supply) was driving inflationary pressures in the country.  

With money supply data for February 2024 yet to be released, it remains to be seen if the MPC decisions taken last month have had any effect.

However, there is a possibility that the huge yield rates offered in treasury bills, FGN bonds, and OMO bills over the past one month could have an effect in driving down money supply.  

 

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