May 24 (Lagos) - Some minutes ago, the CBN Monetary Policy Committee concluded its two-day meeting and, in line with our expectations, there was no devaluation and all monetary parameters were left unchanged.



Monetary Policy Rate (MPR) was retained at 12%.



Cash Reserve Ratio (CRR) remains 22.5%.



Liquidity ratio was retained at 30%.



Asymmetric corridor around the MPR also remains +200bps and -500bps.



On currency, the apex bank stated that the 9 (out of 12) members of the MPC in attendance voted unanimously for a flexible exchange rate policy and directed the CBN to work out mechanisms for ensuring flexibility of FX supply. The central bank governor however noted that a “small window” remains open for direct FX supply from the CBN for critical transaction




http://www.easykobo.com/News.aspx?id=19441

No devaluation after all the speculations and denial back and forth...

So it technically means we would be looking at a bearish market for the fixed income instruments while a bullish market for equities, especially banks for now. Then also, CBN is focusing on economic growth in lieu of curbing inflation( inflation is not suppose to be more than MPR in any given economy, but the reverse is the case here ~ 13.7% vs 12%)..

In summary, no summary. Continue living your life

....and I think Economics should be added as a compulsory course in 100level for all degrees in our universities.

The devaluation debate turned most Nigerians into economists...

But with the outcome of this meeting, life goes on. Let us see how the markets react to this.

Cc: dominique, Seun