Maryam Abeeb
The Central Bank of Nigeria, CBN has disclosed that it will hold its first Monetary Policy Committee Meeting, MPC in 2024 on Monday and Tuesday , February 26 and 27.
This was made known in document titles “ #CBNMPC Meetings Tentative Calendar for 2024.
This will be the first meeting under Yemi Cardoso, the CBN governor succeeding embattled Godwin Emefiele.
The calendar of meetings, which guides the financial landscape, has been updated to reflect the first and subsequent meeting dates.
The CBN Act 2007, outlining the functions and responsibilities of the MPC, emphasizes its crucial role in aligning monetary policy with the broader economic goals of the country. The committee is tasked with implementing measures that contribute to the stability of prices, thereby supporting the overall economic policy objectives of the Federal Government.
In adherence to the provisions outlined in the Central Bank of Nigeria (CBN) Act, the Monetary Policy Committee (MPC) is directed to convene at least four times annually. The Act specifies that the governor, or in the governor’s absence, the deputy governor responsible for monetary policy, possesses the authority to summon a meeting, provided a notice of not less than seven days is given.
Though the primary objective of monetary policy is the attainment of low and stable inflation, the central bank also has the added mandate to promote economic growth and employment. In practice, monetary policy plays a counterbalancing role to address price stability concerns and stabilize the economy.
During a period of high inflation, contractionary monetary policy is used to reduce the amount of money in circulation while expansionary monetary policy is used when economic conditions are weak. Depending on the level of financial development of a country, monetary policy is usually implemented through the banking system and financial markets.
Implementing monetary policy involves interactions between the monetary authorities and financial intermediaries, using tools of monetary policy including reserve requirements, open market operations, and the policy rate, amongst others. Various frameworks of monetary policy have been used including monetary targeting, exchange rate targeting and inflation targeting, etc.
