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Nigerians Should Expect Stable Money Market Rates By March 2013 – Mainstreet CEO

By on January 27, 2013

The Group Managing Director of Mainstreet Bank, Faith Tuedor-Matthews recently revealed that a combination of the current liquidity in the system and the decision of the Central Bank of Nigeria’s Monetary Policy Committee to retain the Monetary Policy Rate at 12 percent at its last week’s meeting is bound to usher in a regime of stable money market rates.
Tuedor-Matthews who disclosed this on Friday while speaking to newsmen, said that: “Money market rates are expected to remain stable (up until the next MPC meeting of March 18thand 19th when  MPR might likely be reduced) and will continue to reflect system liquidity and trend between a band of +/-250bps around the MPR.”

 

The MBL chief was positive that there will be an increase in secondary market activities in the bond market by  March 2013

According to her, “Most analysts expect relative stability in the FX markets (WDAS, autonomous, BDCs and parallel) as accretion to Nigeria’s external reserves remains stable at the back of further foreign exchange inflows to buy Nigeria’s fixed income securities and shares.”

Tuedor-Matthews revealed that a further decline in inflation rate is being envisaged with some analysts predicting a single digit inflation figure by end of Q1, 2013.