OPEC’s cut holiday, fate of naira to shape MPC decision Tuesday
As the key decision making body of the nation’s monetary policy, the Monetary Policy Committee (MPC) begins its strategic two-day meeting today in Abuja, analysts say Friday’s decision by OPEC to retain cut exemption for Nigeria and the current strength of the naria will drive decision.
Even though local currency is expected to trade little change against the United States dollar this week as investors await the Central Bank of Nigeria’s (CBN) MPC decision on interest rate on Tuesday, caution is expected to avoid shocks.
The CBN Governor, Mr. Godwin Emefiele, said the committee would announce its policy decisions on September 26.
Aside the positive indicators that show that economy may be on recovery trend, research bodies monitoring the economic indices say the policymakers may be forced to leave all the key monetary policy instruments unchanged to limit heavy shocks on portfolio inflows and currency market liquidity.
Several experts who spoke to our correspondents on possible decisions that may taken tomorrow say not much is expected in terms of calibrating the rates so as not to hobble expected new investments and existing ones.
