just2endowed:


If the develop world raise a decimal digits in their rate, it will discourage foreign direct investment in developing nation like Nigeria. Hence, developing nations has to calculate this foreign investment risk and hike their rate too

Elliotwaveforec:

Dey there dey follow book, look am and use your sense.... Fela Kuti.

Can you tell me what causes Nigeria's inflation?

JoshTim:
This is a monetary policy, a contractionary monetary policy for that matter, to reduce the effect of inflation escalated by too much money purchasing few goods orchestrated by easy access to funds via credit shemes.
What this means is that CBN has increased it's interest on loans to commercial banks. Basically, commercial banks will water this down to the general banking populace.

luvly4luv:


You are not totally correct. What we are experiencing in Nigeria now is a cost push inflation, meaning that prices of things have gone up high, not because of too much money in circulation, but due to that production cost, energy cost, cost of food items and transportation has gone up.

CBN is still not getting it right by increasing interest rate. What this country need now is to revamp the production/ industrial sector, fix power( electricity), fix the road infrastructure and improve railway transportation, boost agriculture.

If we fail to thread in these directions, forget whatever measures and policies introduced by CBN. Those policies can be effective if we have demand push inflation.

Kosoco:
Everything has increased in Nigeria What's going on

Elliotwaveforec:
Mumu CBN, raising interest in a developing Ecinomy. Has the rate hike solved to ge problem of inflation? For God's sake, developing economies should make money available to individuals and companies to achieve developnent first, then tackle inflation.

Our inflation isn't even caused by excess monies in circulation; it's caused by high exchange rate since the useless CBN is killing industries by raising rates.

Tinubunomics is the answer; negative interest rate is the way; ECB did it and it worked just to bring the economy back to life.

Developing countries are just joining the bandwagons by raising rates like the developed world. Are their Apex banks brainless or what?

olaztek:

This your textbook economics no dey work for naija. The cbn has been manipulating the monetary policy and still, the economy is not improving.
There should be a special study into naija economics because the generally acceptable law of economics is useless in this country

Sonoyom:
Economy is in bad shape and these senile individuals are still contracting the economy.

lonecatt:
So your own understanding is that there is no need for enabling environment for small businesses to thrive?
how Many small businesses can actually get a loan?
how many small businesses can actually meet up with the increased interest rate?
is the policy also aimed at killing businesses?

Cognitivereason:


na u be olodo

inflation simply means too much money is flowing in an economy...

too much money flowing in an economy where there are less things to buy means that money losses value and the things to be bought increase in price
in order to cushion this central banks all over the world raise interest rate in order to discourage People from borrowing money to be circulated into an economy that already has an excess of it..

but Trust Nairalanders..they have no single clue of how economies works hence they are wailing even in things that glaring to undertsand

LongwayGone2021:
Sri Lanka 2.0 loading in Nigeria

Sleyanya1:
Tough but interesting times

I just wonder how most parents are managing their homes in these times. Almost everything is heading for the sky.


We really don't need any Prophet to tell us that Nigeria is gradually deteriorating and we have just 2023 to at least stop her further decline.

A305:
No, it means the banks won't be able to give out loans like they used to.

Only top tier businessman can have access to banks loan, the peasant borrower is cut off this period of inflation to curb the likely risk of recession.

mamaafrik:
we could setup an upward review of tax exemption ,holiday, subsidy and many cushions.

luvly4luv:


You are not totally correct. What we are experiencing in Nigeria now is a cost push inflation, meaning that prices of things have gone up high, not because of too much money in circulation, but due to that production cost, energy cost, cost of food items and transportation has gone up.

CBN is still not getting it right by increasing interest rate. What this country need now is to revamp the production/ industrial sector, fix power( electricity), fix the road infrastructure and improve railway transportation, boost agriculture.

If we fail to thread in these directions, forget whatever measures and policies introduced by CBN. Those policies can be effective if we have demand push inflation.

Kosoco:
Everything has increased in Nigeria What's going on

AKWATGOLD1:
This CBN governor is a big idiot to say that increase interest rate is to tame inflation.

iwaeda:
By the time APC finished with us

Poanan:


Obviously u dont understand economics. Let the rate reflect the reality

Skyfornia:
These guys are all about take take take take and take.. they are not doing anything for the citizens. Nawaoo

Yet people are still supporting this government.

Vanzcharles:


Bro so many things causes inflation, should I school you on this now?
But that would be unnecessary, I would prefer schooling you on interest rate importance in the economy.
Interest rate

❗❗
Interest rates are the most important tool
central banks have and they are used to in
fluency lending and savings and borrowing or
consumption.
Ahigher interest rate incentivizes investment
and saving,since people will get more interest
on their deposits and receive more in interest
payments when borrowing to others.
However,a lower rate of interest incentivizes
borrowing and consumption,since it is cheaper to borrow money for that new car or house someone has always wanted.

❗❗The rate of interest also affects the
flow of money across borders. For example,suppose interest rates in the UK
are 2 percentages while in Germany they are 5
percent.People with savings in the bank
would move their money into German
banks to get a higher rate of interest,in
effect,selling their pounds and buying
euros.Therefore,changes in the interest
rate are high impact events for exchange
rates.❗❗
Also,monetary policy announcements are
made regularly by the major central banks
and if you think the interest rate will be low
or higher than expected,the you can trade
that currency and take advantage of the play
Volatility following these announcements.
You can still use "google" to get more information if you are still ignorant about it.

showafrica:


The only hope remaining now is Obi but six months still far sha

Cognitivereason:
inflation simply means too much money is flowing in an economy...

too much money flowing in an economy where there are less things to buy means that money losses value and the things to be bought increase in price
in order to cushion this central banks all over the world raise interest rate in order to discourage People from borrowing money to be circulated into an economy that already has an excess of it..

but Trust Nairalanders..they have no single clue of how economies works hence they are wailing even in things that glaring to understand

just2endowed:


Hope interest rate on savings and tb rate will increase because the 3% is too minimal

Cognitivereason:


inflation simply means too much money is flowing in an economy...

too much money flowing in an economy where there are less things to buy means that money losses value and the things to be bought increase in price
in order to cushion this central banks all over the world raise interest rate in order to discourage People from borrowing money to be circulated into an economy that already has an excess of it..

but Trust Nairalanders..they have no single clue of how economies works hence they are wailing even in things that glaring to understand

Cognitivereason:


abeg go and tear all ur school certificate if u have any..u dont deserve it..

inflation simply means too much money is flowing in an economy...

too much money flowing in an economy where there are less things to buy means that money losses value and the things to be bought increase in price
in order to cushion this central banks all over the world raise interest rate in order to discourage People from borrowing money to be circulated into an economy that already has an excess of it..

but Trust Nairalanders..they have no single clue of how economies works hence they are wailing even in things that glaring to undertsand

Cognitivereason:
inflation simply means too much money is flowing in an economy...

too much money flowing in an economy where there are less things to buy means that money losses value and the things to be bought increase in price
in order to cushion this central banks all over the world raise interest rate in order to discourage People from borrowing money to be circulated into an economy that already has an excess of it..

but Trust Nairalanders..they have no single clue of how economies works hence they are wailing even in things that glaring to understand

Cognitivereason:


Thank You...I dont know the kind of schools some people went to..if the ones with Ph.Ds dont know basic economics..