With Emerging Markets Turmoil, Renewed Inflationary Pressure, CBN Likely to Raise MPR
Obinna Chima
There are strong indications that the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) which meets less than 10 days from today, will raise its benchmark monetary policy rate (MPR) in order to wade off spill over
from the turmoil in emerging markets (EMs) as well as to tame inflationary pressure. Russia’s central bank last week raised its main interest rate for the first time in almost four years, following Turkey in taking steps to defend its currency amid emerging market turmoil. The Bank raised its benchmark
lending rate by 0.25 percentage points to 7.50 per cent. The rouble, which has also been battered by worries over US sanctions and other political pressure on Russia, rallied on the announcement and traded as much as 0.8 per cent stronger at Rbs67.64. Precisely, the next MPC holds
between September 24th and 25th 2018. Nigeria’s Consumer Price Index, (CPI) which measures inflation increased by 0.09 per cent to 11.23 percent (year-onyear) in August, compared to the 11.14 per cent recorded the preceding month, the National Bureau of Statistics (NBS)
revealed on Friday. That was the first year-on-year rise in headline inflation after 18 consecutive disinflation in the index. However, stock markets as well as currencies in EMs such as Argentina, Turkey, South Africa, Brazil, Mexico, Egypt, South Korea, Philippines and China, have plunged heavily
in the past few weeks, even as the naira has remained stable. EMs across board have been under pressure since the US Federal Reserve raised interest rates in June. Governments and companies had borrowed in dollars when Continued on page 8
Adeosun Jets out of Nigeria to London… Page 8 Sunday 16 September, 2018 Vol 23. No 8551
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Presidency Hits Back at HSBC: Return Our Stolen Assets inYour Custody Says bank out to discredit Buhari out of fear of sanctions and fines it might incur over stolen national assets Silent on The Economist, Wall Street Journal Omololu Ogunmade in Abuja Apparently, angered by the damning report of HSBC, which was followed by another
report by The Economist, predicting defeat for President Muhammadu Buhari in 2019, and warning that should he win, the country would suffer
further economic deterioration, the Presidency yesterday in Abuja asked HSBC, a global financial institution, to return the loot in its custody instead
of predicting doomsday for Buhari in the presidential poll. Reacting to HSBC's prediction that the opposition Peoples Democratic Party (PDP)
would defeat Buhari’s All Progressives Congress (APC) at the forthcoming presidential poll, presidential spokesman, Malam Garba Shehu, in a statement,
said a bank, which harboured stolen loot from Nigeria lacked any moral right to predict the Continued on page 8
Ambode: Tinubu Adamant Over Governor’s Second Term Sanwo-Olu may declare gubernatorial ambition today Pressure on Hamzat to stand down and deputise
Bayo Akinloye Some last minute diplomacy by presidency and concerned stakeholders to save Governor Akinwunmi Ambode’s job for another term might have hit yet another brick wall as Tinubu has remained adamant insisting that he does not want to repeat the mistake he made after several prominent people intervened when he moved against former Governor Babatunde Fashola. The Fashola experience is said to have left a bitter taste in Tinubu's mouth as Fashola went on to build his own relationship with Buhari without his (Tinubu's) endorsement. Fashola, Tinubu's loyalists lament, almost emasculated the godfather. The hawks around him are said to be furiously backing Tinubu not to cave in to pressure to drop his opposition to the governor's second term for similar reason that Ambode would come after
them except there is an ironclad way of forcing him to honour certain conditions that would guarantee their continued relevance. Tinubu is however said not to be particularly keen on conditions but fears that having literally pulled a gun on the governor, should he now lower it and back the governor's second term quest, Ambode might come after him when he is re-elected.. Interestingly, while Ambode's fate is hanging precariously in the balance, Mr. Babajide Sanwo-Olu, the much talked about alternative candidate to Ambode, was said to be putting finishing touches to his declaration rally, meant to hold today at Skypower open ground, beside Archbishop Vinning Memorial Church, Ikeja. In order to scale up the status Continued on page 8
See THISDAY Weekly Guide to 2019… Pages 16-17
HEALTH FOR ALL... R-L: GAVI Champion for Africa and Founder, Avon Medical, Dr. Awele Elumelu; CEO, GAVI, The Vaccine Alliance, Dr. Seth Berkley; and Director-General, World Health Organisation (WHO), Dr. Tedros Adhanom Ghebreyesus, at a conference to champion increased vaccine converage, targeting underimmunised nations, in Geneva... recently