November 23, 2021/United Capital Research

At the end of the two-day policy meeting, the committee members voted to hold all parameters stable. The above decision was made in light of the Nigerian economy’s continued GDP growth in Q3-2021, moderating inflationary pressures, surge in oil prices, improvement in vaccination levels.

 Specifically, the committee decided to;

• Retain Monetary Policy Rate (MPR) at 11.5%.
• Maintain the asymmetric corridor around the MPR at +100/-700bps.
• Retain the Cash Reserve Ratio (CRR) at 27.5%; and
• Retain liquidity ratio at 30.0% 

Implication on key variables

• Demand for short term bills will persist in the treasury markets while investors remain cautious of holding long-term papers.
• Relatively muted effect in the equities market.
• Recovery in the local economy will continue, as credit growth is expected to expand further in Q4-2021 potentially boosting GDP.