Again, CBN Shelves Monetary Policy Committee Meeting

For the second consecutive time this year, the Monetary Policy Committee (MPC) of the Central Bank has postponed its statutory meeting that was meant to be held on Monday and Tuesday.

The MPC  is expected to meet bi-monthly except otherwise, in the event of an emergency.

The last meeting that was held by the committee was held in July and was spearheaded by the then acting governor of the apex bank, Adebisi Shonubi.

President Bola Ahmed Tinubu had in early September announced Dr Olayemi Cardoso as the governor of the CBN alongside the appointment of new deputy governors.

With the confirmation of his appointment coming towards the end of the September, leading to the postponement of the September meeting which had earlier been scheduled for September 25 and 26, 2023.

The MPC is the highest monetary policy making body and consists of the CBN governor, the four deputy governors, two members of the Board of Directors of the bank; three members appointed by the President and two members appointed by the Governor of the CBN.

The CBN 2007 Act stipulates that the “MPC shall have responsibility within the Bank for formulating monetary and credit policy.” The committee is also saddled with the mandate of reviewing economic and financial conditions in the economy, monetary policy framework and adopt changes when necessary; determining appropriate stance of policy in the short to medium term as well as communicate monetary/financial policy decisions effectively to the public and ensure the credibility of the model of transmission mechanism of monetary policy.

With Cardoso making it clear that he will be deviating from the policy direction of his predecessor, investors are expecting the MPC meeting for signals on how the apex bank will rein in inflation. Latest data by the National Bureau of Statistics put the latest inflation figure at 27.33 per cent, the fastest pace in almost two decades.

Investors are also anticipating an update on the overhaul of the nation’s foreign-exchange controls initiated by President Bola Tinubu in June.