• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Opinions Op-Eds

Monetary authorities hold policy rate constant

CSL Stockbrokers by CSL Stockbrokers
May 26, 2021
in Op-Eds, Opinions
All eyes on MPC as naira crashes to record low
Share on FacebookShare on TwitterShare on Linkedin

As expected, the Monetary Policy Committee (MPC) at the end of yesterday’s meeting, unanimously elected to:

  • Retain the Monetary Policy Rate (MPR) at 11.5%.
  • Retain the Asymmetric Corridor around the MPR at +100/-700bps.
  • Retain the Cash Reserve Ratio (CRR) at 27.5% and
  • Retain the Liquidity Ratio (LR) at 30.0%.

In our view, the decision seems reasonable, as the CBN remains squeezed between the necessity to sustain the real economy, as growth remains fragile, and to curb elevated inflation, which remains well above the CBN’s target of 6%-8%. Therefore, hiking rates, in recognition of increased upside risk to prices and mounting external sector pressures would further constrain economic growth, while a rate cut is likely to intensify inflationary pressures and amplify the currency risk.

Market Impact

Fixed Income

RelatedStories

MSMEs, stock market

Why many Nigerian MSMEs may be locked out of access to credit – Expert 

July 13, 2025
CBN, MPC

CBN opens application for Knowledge Acceleration Programme to shape future research priorities 

July 13, 2025

The outcome of the MPC meeting is unlikely to result in any fundamental change in the fixed income market. We expect sentiments to remain bearish, as the negative real return, successive rate hikes at auctions and elevated fiscal deficit strengthens the case for sustained yield increase in the near term. As such, we think the steepening of the NGN yield curve will persist.

Equities

Domestic investors have been selling down their equity holdings in response to the rising yields in the fixed income market and we do not expect any change in the recent trading pattern considering investors do not expect a reversal in the uptick in yields. In our view, trading in the market will remain choppy as investors cherry-pick fundamentally sound stocks.

Outlook

We project the economy will grow by 2.3% in Q2-2021. On the flip side, we forecast m/m headline inflation of 1.16% in May, which translates to a y/y reading of 18.10% (April 2021: 18.12%).

The CBN finally adopts the I&E window rate as the new official exchange rate for the country. This should help simplify Nigeria’s intricate FX regime and provide a slight boost to the government’s oil revenue.

Looking ahead, we forecast the CBN will likely devalue the I&E rate by c.5-7% by year-end to unlock FX liquidity, attract new FPI flows and curb the current account imbalances, which is projected to reach US$10.80 billion (2.1% of the GDP) in 2021.


CSL Stockbrokers Limited, Lagos (CSLS) is a wholly owned subsidiary of FCMB Group Plc and is regulated by the Securities and Exchange Commission, Nigeria. CSLS is a member of the Nigerian Stock Exchange.


Follow us for Breaking News and Market Intelligence.
CSL Stockbrokers

CSL Stockbrokers

Related Posts

MSMEs, stock market
Business News

Why many Nigerian MSMEs may be locked out of access to credit – Expert 

July 13, 2025
CBN, MPC
Financial Services

CBN opens application for Knowledge Acceleration Programme to shape future research priorities 

July 13, 2025
CBN, forex
Financial Services

CBN to decide Nigeria’s interest rate policy on July 22 MPC meeting 

July 13, 2025
Williams Fatayo exits as CEO of Nigerian startup truQ over leadership dispute
People

Williams Fatayo exits as CEO of Nigerian startup truQ over leadership dispute

July 13, 2025
NDLEA arrests drug kingpin, intercepts 722,875 opioid pills, cocaine in Lagos
Business News

NDLEA arrests drug kingpin, intercepts 722,875 opioid pills, cocaine in Lagos

July 13, 2025
Climate change threatens global data centres, may cause billions in damages—Report  
Sectors

Climate change threatens global data centres, may cause billions in damages—Report  

July 13, 2025
Next Post
Gold surges, Joe biden

Gold breaks $1,900 mark as inflation concerns persist

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Why many Nigerian MSMEs may be locked out of access to credit – Expert 
  • CBN opens application for Knowledge Acceleration Programme to shape future research priorities 
  • CBN to decide Nigeria’s interest rate policy on July 22 MPC meeting 

Follow us on social media:

Recent News

MSMEs, stock market

Why many Nigerian MSMEs may be locked out of access to credit – Expert 

July 13, 2025
CBN, MPC

CBN opens application for Knowledge Acceleration Programme to shape future research priorities 

July 13, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics