The Bank of America has said the Monetary Policy Committee of the Central Bank may need to increase interest rates by at least 700 basis points before the end of the year to curb inflation.

In an interview with Bloomberg on Monday, the bank’s sub-Saharan Africa Economist, Tatonga Rusike, said the hike was necessary to tackle soaring inflation occasioned by the fuel subsidy removal and unification of foreign exchange.

Rusike explained that at the current trend, inflation may quicken to 30 per cent by the end of the year from 22.4 per cent in May, noting that the nation’s apex bank may need to push up the rates.

He further warned that if this decision was not taken, foreign investors might exercise caution before investing in the country.

“Inflation may quicken to 30% by the end of the year from 22.4% in May and that will require a monetary policy response from the central bank – effectively, interest-rate hikes by at least 700 basis points.

“If the negative real interest rate is not reversing, then it is less likely to see foreign inflows coming into the country,” Rusike said adding that “it is less likely they (CBN) will do such level of increases,” he said.

The PUNCH reports that the CBN, in record-breaking moves has been increasing the country’s interest rates since last year.

The Bank of America has said the Monetary Policy Committee of the Central Bank may need to increase interest rates by at least 700 basis points before the end of the year to curb inflation.

In an interview with Bloomberg on Monday, the bank’s sub-Saharan Africa Economist, Tatonga Rusike, said the hike was necessary to tackle soaring inflation occasioned by the fuel subsidy removal and unification of foreign exchange.

Rusike explained that at the current trend, inflation may quicken to 30 per cent by the end of the year from 22.4 per cent in May, noting that the nation’s apex bank may need to push up the rates.

He further warned that if this decision was not taken, foreign investors might exercise caution before investing in the country.

“Inflation may quicken to 30% by the end of the year from 22.4% in May and that will require a monetary policy response from the central bank – effectively, interest-rate hikes by at least 700 basis points.

“If the negative real interest rate is not reversing, then it is less likely to see foreign inflows coming into the country,” Rusike said adding that “it is less likely they (CBN) will do such level of increases,” he said.

The PUNCH reports that the CBN, in record-breaking moves has been increasing the country’s interest rates since last year.

At its last Monetary Policy Committee meeting held in May 2023, the benchmark interest rate was further pushed forward by 0.5 per cent to 18.50 per cent from 18.00 per cent in March.

The raise has however not slowed Nigeria’s soaring inflation which hit 22.41 per cent in May 2023 compared with 22.22 per cent in April 2023.

In its report last month, the National Bureau of Statistics attributed the increase in the average prices of goods and services in the month under review to the 24.82 per cent jump in the food inflation rate.

https://punchng.com/bank-of-america-warns-nigeria-inflation-may-hit-30/

That one doesn't concern the BAT. So far he can tax the living daylights out of the people. Even unborn baby will pay tax in this administration

Lol

Tinubu said he will hit the ground running running, it is like he hit the ground too hard and has crashed the economy, the battery life of the economy might be below 30%....

Anyway, the economic crash will favour me and my family....

Chai. More problem

Normally, we are ready to adapt. When Pablo Escobar and his goons goes to another town hall meeting, they will know how to implement another policy to punish the citizens more.

Babablu on the beat

The man did not know opening the border will bring a fresh relief now? Subsidy removal plus border close oga you wan kill common man

Na to hoard my product be that, make I wait when the prices increase as a result of the impending inflation rate hike


Make the inflation favour me and my family too na


Ndi ara

They should Bleep themselves and use condorm so that won't infect us with virus

What were you expecting when you removed 100% subsidy on one of the main determinant of price of other commodities In the country.

You aren't strong In production.

Just dependent on exported Oils that will be sold back to you at higher rate.

What you get at the end, is

1, People become more greedy and wicked, as everyone is indirectly getting taxed without increase in income.

2 Price of basic necessities like foods, Electricity, Pharmaceuticals, housing. Increases.

3. Hunger 3x of what it used to be based on harsh policies

4. Indefinite Inflation.


You're welcome to Tinubunomics, Government of Renewed Shege.

Only fools will support this govt while still suffering and jobless.

That's cos buying power and production are shrinking.
Handle bandits and agberos to boost production and productiveness.

Igbos are the most adaptive. Tinubu carry go

This inflation will favour me and my family. Almiron abeg drop that pic.

Som497:
ur father should have followed this advice when fucking ur mum, that way, we wouldnt suffer a cretin lyk u

Mynd44
Seun
Dominique
Oam4j
Mukina

Rule 2