The Monetary Policy Committee (MPC) is scheduled to hold its fifth meeting of the year on the 16th and 17th of September 2021. An appraisal of key developments in the global and domestic environment is expected to feature in the Committee’s considerations and ultimately feed into its decision.
The general economic recovery witnessed so far should be a major discussion point and a key consideration for the Committee while noting the downside risk posed by the Delta variant to the country’s economic outlook. On
the other hand, we posit that the disinflation recorded since April should quell fears of mounting inflationary pressure and thus give the Committee more room to allow the existing policy to permeate the economy.
Ultimately, we expect the Committee to:
▪ Retain the MPR at its current level of 11.50%
▪ Retain liquidity ratio at 30%
▪ Retain the asymmetric corridor at +100bps/-700bps
▪ Retain the CRR at 27.50%
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