FCSL WEEKLY MARKET REPORT -26TH JULY, 2019

ECONOMY
MPC Maintains MPR at 13.5%
In the just concluded MPC meeting, the following were the resolution reached by the Monetary Policy Committee Members; Monetary Policy Rate was retained at 13.5%, Cash Reverse Ratio was retained at 22.5%, Liquidity Ratio was retained at 30.0% and asymmetric window was retained within the corridor of+200 and -500 basis points around the MPR, this implies that the country’s still will be able to attract FDI fund, as they will be exploring the opportunity of higher yield in T-bills and Bonds.
 
United State GDP Rate for Q2 increased to 2.1%
The United State GDP rate for the second quarter of 2019 increased to 2.1%, although lower than the first quarter GDP rate of the same year that stood at 3.1%, the decelerated GDP for the second quarter is in connection with the resumption of tariffs imposition on china and impact of global economic slowdown, while the second quarter GDP rate thus refute earlier fear of United State economy heading towards recession.