By Nik Ogbulie
About 72 hours after the CBN delivered what seems to be the last MPC guidelines, Nigerians have exhibited an unprecedented purchase spree, indicating a huge belief as expressed by the apex bank on the future of the economy.
The MPC decisions, apart from the cantankerous lending regime, have indicated a major slowdown in critical market indices believed to have become areas of great concern by the Yemi Cardoso team.
Indications are rife that the top of the chart purchases range from commodities and consumables to non-consumer durable . The purchase surge is also believed to have been influenced by the slide on inflationary trend and forex rates when compared with the same period last year, when the new CBN administration was less than one year in office.
Our Economic Intelligence report is of the position that the new purchase trend relies so much on the MPC assurances which indicate that market costs will not be a phenomenon that does not come down as the case had been in the past, thereby offering Nigerians the assurance that they will soon have the taste of reduced market volatility by 2026.
Economists spoken to by Moneyreport are of the belief that the CBN has been gradually winning the trust of Nigerians to the extent that the people can take the bank’s plans to the market, as happens now.
It is believed that by the time the Nigerian government sorts out the fiscal issues as anmarket equilibrium position will easily be achieved in a way that inflation will take a stroll downwards.
They believe that major money market inhibitions to the economy have been tamed while a little effort on the fiscal side would be needed for the country to achieve market stability which will offer Nigerians the privilege for a single digit inflation and new lower rates regime. They further told Moneyreport that about 76% of inflation components arise from very high transportation costs on food distribution, services, household concerns such as poor electricity.
Commodity market analysts believe that Nigerians have increased their spending on domestic goods as alternative sources have remained so high even as they are low on value chain.
Nigerians are positive that a further drop in forex cost and inflation rate will attempt to close up the growth gap . This is what they are feeling that the apex bank may achieve before the next MPC date.
