BY BAMIDELE FAMOOFO
The Monetary Policy Committee of the Central Bank of Nigeria is expected to hold its fourth meeting of the year on July 18 and 19, 2022.
On balance, analysts expect the Committee to retain the MPR at 13.0 percent alongside other monetary policy parameters to allow previous policy actions to permeate the economy.
Analysts at Cordros Research said they expect the Committee’s tone to be hawkish in the light of the tightening of monetary policy by global central banks and the election spending effect on inflationary pressures.
Abdulazeez Kuranga, Analyst at Cordros Research, said the Committee will likely stress the need to examine the global economy’s health in the near term and how the global central banks would react correspondingly, given that the downside risks to global growth have intensified. “On the domestic front, we believe near-term inflation expectations will likely discomfort committee members, given the pass-through impact of elevated global energy prices on headline inflation.
“Moreover, we expect the Committee to maintain a cautious outlook on the domestic growth pace given the spillover impact of an impending global growth slowdown on the domestic economy amidst supply-side driven domestic inflationary pressures,” he said.
