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Daily Business News Brief |  Wednesday, January 26th,  2022.

26
Jan

Stock Market Rebounds as CBN Maintains Status Quo on Rates – Thidsay

The stock market of the Nigerian Exchange Limited (NGX) gained N6 billion, even as Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) maintained status quo on its rates.  Members of the MPC voted unanimously to maintain the Monetary Policy Rate (MPR) at 11.5 per cent at its concluded meeting. Similarly, the Committee also voted to retain the Cash Reserve Requirement (CRR) at 27.5 per cent, liquidity ratio at 30.0 per cent and asymmetric corridor around the MPR at +100bps/-700bps.

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Recapitalisation Deadline: PFAs Consummate Mergers, Acquisition Deals as Stakeholders Differ on Adequacy of New Capital Regime- Punch

The price of Automotive Gas Oil, also known as diesel, has increased further to N350 per litre in some filling stations in Lagos.  The PUNCH had reported on October 7, 2021 that fuel marketers had increased diesel price to N320 per litre as the further rise in global crude oil prices and naira depreciation pushed up the cost of importing fuel into the country.  The price of diesel, which is not regulated by the government, has surged by over 40 per cent so far this year from an average price of N225 per litre in January……………….. read more

CBN retains lending rate at 11.5% – Punch

The Central Bank of Nigeria has retained the Monetary Policy Rate at 11.5 per cent.  The CBN Governor, Godwin Emefiele, disclosed this during a briefing after the first Monetary Policy Committee meeting for the year held in Abuja on Tuesday.  Other parameters left unchanged are the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent respectively.  Announcing the committee’s decision, Emefiele said, “After a careful balancing of the benefits and the downside risks of the policy options, the MPC decided to hold all parameters constant, believing that a whole stance will enable the continuous permeation of current policy measures in supporting the recorded growth recovery and further boost production and productivity which will ultimately rein in inflation in the short to medium term…………… read more

IMF retains 2022 growth forecast for Nigeria at 2.7% – Vanguard

The International Monetary Fund has retained its 2022 growth forecast for Nigeria at 2.7 per cent and increased 2023 projection by 0.1 per cent to 2.7 per cent.  The IMF had in its October report last year projected a 2.7 per cent growth rate for 2022 and 2.6 per cent for 2023.  In its January World Economic Outlook report released on Tuesday, the IMF downgraded its growth forecast for sub-Saharan Africa to 3.7 per cent and 4.0 per cent for 2022 and 2023 respectively from 3.6 per cent and 3.9 per cent forecast in its October 2021 WEO report.  The IMF also reduced its forecast for global economic growth to 4.4 per cent in 2023, representing 0.5 percentage points lower than the 4.9 per cent projected in October………………… read more

MPC: Experts foresee tougher days as CBN retains lending rate – Daily Independent.

Financial analysts are divided over the decision of the Central Bank of Nigeria’s Monetary Policy Committee’s decision to retain key lending rates after its two-day meeting that ended on Tuesday.  Some analysts said the development meant tougher days ahead  for Nigerians and companies, while others said the MPC had no choice but to leave the key rates unchanged.  Analysts had last week predicted that might tighten monetary policy during its first meeting in this year.The committee however left the key policy rates unchanged……………read more

Analysts Predict Downturn in Equities Market over Unrelenting FX Debacle – Punch

Financial analysts are divided over the decision of the Central Bank of Nigeria’s Monetary Policy Committee’s decision to retain key lending rates after its two-day meeting that ended on Tuesday.  Some analysts said the development meant tougher days ahead  for Nigerians and companies, while others said the MPC had no choice but to leave the key rates unchanged.  Analysts had last week predicted that might tighten monetary policy during its first meeting in this year.The committee however left the key policy rates unchanged……………read more

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