By Milcah Tanimu

Despite the surge in inflation, the Central Bank of Nigeria (CBN) has once again postponed the meeting of its Monetary Policy Committee (MPC). The meeting, initially scheduled for Monday and Tuesday, has been deferred for a second time since Olayemi Cardoso assumed the position of governor in September.

The latest postponement leaves investors and analysts waiting for insights into Cardoso’s approach to the escalating inflation, which reached 27.33 percent in October 2023.

According to Dr. Isa Abdulmumin, the CBN’s Director of Corporate Communications, the meeting may have been postponed due to the upcoming Chartered Institute of Bankers of Nigeria dinner, where the CBN governor is expected to present an economic roadmap for Nigeria.

Abdulmumin stated, “The Monetary Policy Committee meeting is not holding this week. All roads lead to the 2023 CIBN annual dinner slated for Friday, 24th.”

Economic experts express concern over the delay, as the markets await a new MPC decision following positive responses in consumer prices to money market reforms. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises, emphasized the urgency of reconvening the policy meeting to provide information about the economy and guide the public on government policy direction.

Yusuf highlighted the importance of MPC meetings in offering insights into the economy, stating, “Monetary policy communication is important to guide investors, and to that extent, it is important to have those meetings. Though it won’t change our current inflation rate.”

Cordros Capital predicts that the CBN will increase its Monetary Policy Rate, currently at 18.75 percent, by 100 basis points. The firm noted the rapidly changing monetary policy space since the last MPC meeting in July and the CBN’s efforts to address issues, especially since the beginning of October. Cordros Capital suggests that further rate hikes by the MPC will reinforce the central bank’s commitment to fighting inflation.