As a sign of possible stalemate, Central Bank of Nigeria, might not be able to seat in order to fix the interest rate for Africa’s largest economy.
This is because the monetary policy committee, MPC, a statutory body that decides the rate under the chairmanship of the CBN Governor is not fully constituted.
According to Reuters, at least five of the MPC’s 12 members are due to be replaced after retiring last year. “The indications that the MPC might not hold are there because of quorum,” one of the sources said.
Central bank rules state that at least six members of the MPC are needed to approve an interest rate decision. A rate announcement had been expected on Jan 23, a day after the meeting.
Nigeria’s headline interest rate has been pegged at 14% for several quarters in order to curb inflation and attract foreign investors into the economy in the midst of a recession.
Inflation is still a problem but consumer prices have since taken a downward movement as oil prices firm and the CBN floods the market with Forex.