The national accounts for Q2 2021 by the NBS show that GDP grew by 5.0% y/y compared with 0.5% recorded in Q1 2021. This is in line with our expectation. Given the output figure registered in the corresponding period of 2020, positive base effect contributed largely to this relatively healthy growth figure. However, we note …
More →Decision (unanimous)Retain MPR at 11.50% Retain the asymmetric corridor of the MPR at +100 / -700 basis point. Retain CRR at 27.5%. Retain liquidity ratio at 30%. The MPC noted the recovery in output growth in Q2 ’21 as well as improving headline PMI readings in the months within Q2 ‘21. It noted the moderate …
More →In 2019, the Central Bank of Nigeria decided to introduce a policy that, in its view, would stimulate the economy while keeping monetary policy tight. A little over two years after its implementation, we examine the impact of the LDR policy on the banks and the overall economy. See page details below. FX Last week, …
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