The first monetary policy committee (MPC) since the appointment of Yemi Cardoso as Governor of the Central Bank of Nigeria (CBN) will hold 26 – 27 February 2024. The MPC did not hold in September and November 2023 following the sweeping changes at the Bank. The spotlight will therefore be on the governor, especially given the macroeconomic changes that has happened since the July 2023 last MPC. In that meeting, the 292nd, the Monetary Policy Rate (MPR) was increased to 18.75% while the asymmetric corridor was adjusted to +100 / – 300 basis points around the MPR, and CRR and Liquidity Ratio were retained at 32.5% and 30%, respectively. Ahead of the meeting, there are two things that are very likely to happen. The first is that there will be a new composition of the MPC. That is, the changes are not just of the board of governors, but an entirely new look MPC. Second, I reckon the new MPC will increase MPR to demonstrate its stance towards tightening further liquidity.
