Access Bank predicts MPR at 14%


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By Tunji Faleye

(Lagos Nigeria) Access Bank has predicted that @accessbankplc Monetary Policy Committee (MPC) will retain MPR at 14 per cent leaving the asymmetric corridor of +200 basis points and -500 basis unchanged.

This is a strong signal to the market that the Central Bank of Nigeria (CBN) will prioritize stemming inflation over promoting growth, as well as supporting the return of foreign capital.

Thus, despite worries over the poor Q2 GDP outturn there will be MPC holding rates in a bid to signal consistency. The bank also said in its Pre MPC communiqué sent to Nigerian Newlive that the Committee will once again reiterate the need for fiscal stimuli to reflate the economy.

The Bank stated that MPC will retain the Cash Reserve Requirement (CRR) at 22.5%, retain Liquidity Ratio at 30%. And also maintain the liberalized FX market with continued ban on 41 items from the interbank window.

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