Experts predict non- review of MPR at MPC meeting

 

Financial experts have projected that the Monetary Policy Committee (MPC), will retain the benchmark interest rate, Monetary Policy Rate at 14 per cent despite sustained moderations in inflation rate amid falling food prices, increase in global crude oil prices with attendant boost in external reserves.
They said though there is convergence of multiple foreign exchange rates and the return to and expected sustenance of economic growth the Committee would not review MPR at its meeting this week.
The experts in Cowry Assets Management said that there is anticipation of increase in public sector spending, in addition to anticipated increased seasonal household spending amid end-of-year festivities.
The experts said that a key consideration will also be likely increase in interest in the United States amid improving economic developments.
Meanwhile, the expert expect the fiscal authorities to beef up public sector non-oil revenues needed, not only to finance major infrastructural projects, but also to boost its capacity to service its growing debt, reduce the „interest expenses to revenue ratio and thus improve its credit worthiness which could have a positive rub-off effect on private sector borrowing cost.

 

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