Nigeria's MPC meeting on July 22-24 is expected to result in a mild rate hike amid high inflation. The naira faces pressure, potentially reaching N1,600/$. Key economic data releases and the FAAC disbursement report are anticipated. AIICO Insurance plans its AGM amidst these economic challenges.
As Nigeria grapples with persistent economic challenges, all eyes are on the upcoming 296th Monetary Policy Committee (MPC) meeting scheduled for July 22-24, 2024. Analysts anticipate a mild rate hike as the country continues to battle high inflation rates.
The Olayemi Cardoso-led committee has already implemented three rate increases this year, raising the benchmark from 18.75% to 26.25%. Despite these efforts, inflation reached 34.19% in June, driven primarily by soaring food prices. The Central Bank of Nigeria (CBN) projects inflation to moderate to 21.40% by year-end, though uncertainties remain.
Financial experts predict a modest increase of 50-75 basis points, reflecting a more cautious approach compared to previous aggressive hikes. This decision comes as the naira faces renewed pressure, with expectations of it reaching N1,600 against the US dollar after a period of relative stability.
The National Bureau of Statistics (NBS) is set to release crucial economic data, including selected food prices and transport fares for June 2024. These figures will provide insight into the ongoing cost-of-living crisis affecting Nigerian households.
The coming week promises to be pivotal for Nigeria's economic landscape, with policy decisions and data releases potentially shaping the country's financial trajectory for the months ahead.
Source: Business Day
