CBN to Commence 294th MPC Meeting March 25

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has announced that the 294th meeting of the Monetary Policy Committee (MPC) would be held on Monday, March 25 and Tuesday, March 26, 2024.

In a post on X, formerly known as Twitter, the apex bank said the gathering, which is where interest rates and other monetary policies are discussed, would take place at the MPC Meeting Room, 11th Floor, Wing C at the bank’s headquarters in the nation’s capital, Abuja.

The meetings are slated for 10 am and 8 am for the respective days.

At the meeting, the 12-member committee led by the Governor of the central bank, will decide whether to make changes or retain the current levels of three key decisions: the benchmark interest rate known as the Monetary Policy Rate (MPR), Cash Reserve Ratio (CRR), and the Asymmetric Corridor.

Recall that at the 293rd event held last month, the MPC increased the benchmark interest rate by 400 basis points to 22.75 per cent from the 18.75 per cent it was increased to in July 2023.

The CRR was raised by 12.5 per cent to 45.0 per cent from 32.5 per cent, the liquidity ratio was left at 30.0 per cent, while the Asymmetric Corridor was moved to +100 basis points and -700 basis points around the MPR from +100 basis points and -300 basis points around the MPR in July 2023.

The rates were hiked by the team to bring down inflation and mop up excess liquidity in the system.

However, the National Bureau of Statistics (NBS) said last month, inflation rose to 31.70 per cent from 29.90 per cent in January, indicating that the MPR might be increased again possibly by 25 basis points.

During the last meeting, it was reported that Mr Cardoso wanted a 425 basis points increment but he was voted down by other members of the committee. The committee went on to settle at 400 basis points, the largest hike in years.

Next week’s MPC meeting will be the second under Mr Cardoso.