The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 13.5% by a unanimous vote. This was made known to newsmen in Abuja at the end of the Apex Bank MPC Meeting that was held on Thursday 19th and Friday 20th September 2019.
The Apex Bank Governor, Godwin Emefiele noted that this was as a result of “softening global growth and weaker-than-anticipated domestic output recovery.” Mr. Emefiele also noted that the Purchasing Managers’ Indices (PMI) grew slightly for the 30th months while Purchasing Non-Managers Index also increased for the 29th consecutive months. Though he noted that they grew marginally for the period under review.
Mr. Emefiele also raised an eyebrow concerning the continual bearish trend of the Nigerian Stock Market which he attributed to investors preference to fixed securities and increased activity in the bonds market.
The CBN Governor also reassured Nigerians that the newly increased Value Added Tax (VAT) will help to reduce government borrowings to financial budgets. It will also boost government fiscal revenue.
Recall that the CBN lately increased VAT from 5% to 7.5% to enable FG bridge Budget deficit amongst others.
Financial Metrics Nigeria reports that the CBN MPC resolved that the government should adopt the “Big Bang” Approach to buffer fiscal policies. As well as privatize redundant government public assets through a transparent process.