The Central Bank’s Monetary Policy Committee (MPC) has once again delayed its scheduled meeting, marking the second such postponement this year. Originally slated for Monday and Tuesday, this statutory gathering was deferred, as the MPC typically convenes bi-monthly, except in cases of emergencies.
The last convened session of the committee took place back in July under the leadership of then acting governor Adebisi Shonubi. Following President Bola Ahmed Tinubu’s announcement of Dr. Olayemi Cardoso’s appointment as the CBN governor and the selection of new deputy governors, the confirmation process, extending into late September, prompted the postponement of the previously arranged meeting set for September 25 and 26, 2023.
Comprised of the CBN governor, four deputy governors, two members from the Bank’s Board of Directors, three appointees by the President, and two by the CBN Governor, the MPC holds the highest authority in formulating monetary policies.
The CBN 2007 Act stipulates that the “MPC shall have responsibility within the Bank for formulating monetary and credit policy.” The committee is also saddled with the mandate of reviewing economic and financial conditions in the economy, monetary policy framework and adopt changes when necessary; determining appropriate stance of policy in the short to medium term as well as communicate monetary/financial policy decisions effectively to the public and ensure the credibility of the model of transmission mechanism of monetary policy.
With Cardoso making it clear that he will be deviating from the policy direction of his predecessor, investors are expecting the MPC meeting for signals on how the apex bank will rein in inflation. Latest data by the National Bureau of Statistics put the latest inflation figure at 27.33 per cent, the fastest pace in almost two decades.
Investors are also anticipating an update on the overhaul of the nation’s foreign-exchange controls initiated by President Bola Tinubu in June.