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November 19, 2018

A good chance of a rate hike this week

The monetary policy committee (MPC) holds its latest meeting this week on Wednesday and Thursday in Abuja. The policy rate has been unchanged since July 2016, when the committee voted by five to three for a 200bps hike to 14.00% in a response, above all, to a spike in inflation. We see tightening this week, most likely in the form of a rate increase. The NBS reports for August and September do show a subdued pick-up in inflation. We understand that CBN staff forecasts point to further modest (although unspecified) rises in the months ahead.                                                                                                                    In our commentary on members’ personal statements from September (Good Morning Nigeria, 12 November 2018), we observed an increasing focus on the new, fuller definition of M3 that includes liquidity outside the banking system....

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November 16, 2018

Successful tapping of the Eurobond market

The FGN has raised US$2.86bn from its latest Eurobond issue, and expects to close the deal on or before 21...

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November 15, 2018

Towards a better energy mix

Today we turn our attention back to this year’s Nigerian Economic Summit held in Abuja, where we attended a session...

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November 14, 2018

Pressure on reserves, stability of fx policy

Today’s chart shows the stability in the fx market since the launch of the CBN’s reforms in Q1 2017. That...

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