Why MPC Postponement May Boost Nigeria's Efforts to Attract Foreign Investors-Expert

Following postponement of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) for the second consecutive time, financial analyst has said the suspension of the meetings may be seen as a demonstration to present a formidable policy thrust that will boost the country’s efforts to attract foreign investors.

A calendar of MPC meetings published on the central bank’s website had scheduled the next gathering for yesterday and today (Tuesday).

Although, some analysts said investors have been looking forward to the MPC meeting for signals on how the lender intends to address the nation’s inflationary trend.

However, while reacting to the MPC postponement, Joseph Undu, a financial analyst, said, “The bank’s decision to suspend today’s meeting may be seen as a demonstration by the new leadership to present a formidable policy thrust that will boost the country’s efforts to attract foreign investors.

It is worthy of note that the central bank held its last monetary policy meeting in july when it raised the benchmark by 25 basis points to curb inflation, which stood at 22.8% in June.

Also, reacted on this development was Prof Uche Uwaleke, a professor of banking and finance, who said the postponement could be a blessing in disguise.

According to him, If the MPC had held in September, it was most likely the monetary policy rate (MPR) would have been jerked up, thereby, further increasing the cost of doing business and reducing access to credit.

“This would have also been the outcome of the November meeting against the backdrop of the pressure by the IMF for an MPR hike to reduce money supply which would not have had any significant impact on the rising inflation”.

This week’s meeting would have been the first rates meeting under the new CBN governor, Olayemi Cardoso, whose appointment was approved by the Senate in September. Under the acting CBN governor, Folashodun Shonubi, the bank raised interest rates twice, but Olayemi Cardoso looks to be deferring that decision.