Key questions this article answers:
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The monetary policy voted to hike interest rates by 50 basis points (bps) in May 2023. What are the possible outcomes of their meeting next Tuesday?
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A lot has changed since May that could influence the MPC’s decision. What has changed?
Come next week; all eyes will be fixed on the outcome of Nigeria’s fourth monetary policy committee (MPC) meeting of 2023. This will be the first meeting in about nine years to be chaired by someone other than the recently-suspended Central Bank Governor, Godwin Emefiele.
Also, following his suspension by President Tinubu in June and a partial undoing of some of Emefiele’s unorthodox monetary policies by the Folashodun Shonubi-led Central Bank of Nigeria (CBN), the financial system has been awash with liquidity (more on this later). This boost in system liquidity has dictated market activity and would only bode negatively for inflationary pressures, which
