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Nairaland Forum / Nairaland / General / Business / CBN Raises Benchmark MPR By 200 Basis Points To 24.75% (10989 Views)
CBN Raises Interest Rate To 18.75% / CBN Raises Interest Rate To 14% / CBN Raises MPR To 13% From 11.5% (2) (3) (4)
(1) (2) (3) (4) (5) (Reply) (Go Down)
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by SmartyPants(m): 2:49pm On Mar 26 |
MrPristine: You have no clue. Inflation is sky high and you are talking about flooding the economy with money to promote new businesses. Secondly, this is being done to further stabilize the naira by attracting fresh portfolio investment. Do you understand all this? 6 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Ogene001: 2:50pm On Mar 26 |
Winning123:You didn't understand the comment you quoted 7 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Putindbutt: 2:50pm On Mar 26 |
OboOlora:illiterate. 5 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by jmoore(m): 2:51pm On Mar 26 |
grandstar:Check it again. |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Putindbutt: 2:52pm On Mar 26 |
MrPristine:Another dummy, so many dummy on this forum. 7 Likes 1 Share |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Ikaeniyan0: 2:54pm On Mar 26 |
MrPristine:They should reduce interest rate when the reason they increase it few days ago has not been achieve? 2 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by softtorce: 2:54pm On Mar 26 |
Exactly, while you continue with your commenting out of foolishness policy on NL. OboOlora: 2 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Putindbutt: 2:54pm On Mar 26 |
SmartyPants:You have the time to explain to dummies, they are ignorant, unteachable and closed minded. 7 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by CodeTemplar: 3:00pm On Mar 26 |
sameoldguy:goods were produced when dollar rate was high so expect prices to crash very slowly. 4 Likes 1 Share |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by jmoore(m): 3:01pm On Mar 26 |
Ikaeniyan0:If business A borrows money at 24.75 % and business B borrows money at 15%. With all other factors being equal, which should have a higher selling price? Is a higher selling price not inflation? 6 Likes 1 Share |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by EconomistXplain: 3:02pm On Mar 26 |
iichidodo: Pos charges will rise |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Emmastan291: 3:02pm On Mar 26 |
Somebody should help me explain this in football terms |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Inspirer1: 3:05pm On Mar 26 |
grandstar:Okay, thank you. We hope and pray for the best to happen to our country. 2 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Elliotwaveforec: 3:08pm On Mar 26 |
It's still low compared with inflation rate! Inflation is currently 28% and interest should be above that; we are still operating negative interest rate (real). For me to buy government bonds, interest rate on the bonds must be higher than inflation rate for me to make profit. CBN is on the right path with the increase, but not enough, it needs to be raised higher as inflation rate rises. Good job CBN! 12 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by kpompey: 3:08pm On Mar 26 |
Government should start price control now that naira is gaining. USD is coming down, but rice price remains unchanged. Dangote still sells cement at 9800, building block still sell above 650. The way EFCC attack the aboki's operating the bureau business, the same way those dubious igbo traders should be pounce on. They increased price of existing stocks bought at a very low rate to current price fixed by manufacturers because of surge in dollars.Now manufacturers are reducing the prices, they are claiming old stock must be cleared at old rate.This is not business but fraud. If USD falls and Nigerians failed to enjoy the dividend, then government has achieved nothing. Government should look inward and set price regulatory bodies to checkmate this rogues calling themselves bizmen. 11 Likes 1 Share |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Tareq1105: 3:10pm On Mar 26 |
OboOlora: Nigeria will be fine in the watchful presence of Tinubu APC presidency to the glory of God whether you wish Nigeria well or not. 6 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by ceejayluv(m): 3:10pm On Mar 26 |
grandstar:Pretty optimistic. When was the last time we had a single digit CPI in Nigeria? 1 Like |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Geovanni412(m): 3:14pm On Mar 26 |
Inspirer1: Increasing the monetary policy rate (MPR) by the Central Bank of Nigeria (CBN) has several implications for the economy: 1. **Tightening of Monetary Policy**: By raising the MPR, the CBN is essentially tightening its monetary policy. This means it is making it more expensive for banks to borrow money from the central bank. When borrowing becomes more expensive, banks are likely to lend less, which can reduce the amount of money circulating in the economy. 2. **Impact on Borrowing and Spending**: Higher interest rates typically discourage borrowing and spending by both consumers and businesses. Consumers may be less likely to take out loans for purchases such as homes or cars, while businesses may scale back on investments and expansion plans due to increased borrowing costs. This can lead to a decrease in economic activity and slower growth. 3. **Control of Inflation**: One of the primary reasons for raising the MPR is to control inflation. Inflation occurs when the prices of goods and services rise over time, eroding purchasing power. By increasing interest rates, the CBN aims to reduce consumer spending and investment, which can help curb inflationary pressures by slowing down demand in the economy. 4. **Exchange Rate Stability**: Higher interest rates can also influence the exchange rate. Increased interest rates may attract foreign investors seeking higher returns on their investments, leading to an influx of foreign capital into the country. This can strengthen the local currency and help stabilize the exchange rate. 5. **Potential Impact on Investment**: While higher interest rates can help control inflation, they may also have a dampening effect on investment and economic growth in the short term. Businesses may delay or cancel investment projects due to higher borrowing costs, which can negatively affect job creation and overall economic output. Overall, the decision to raise the MPR indicates that the CBN is prioritizing inflation control and macroeconomic stability. However, the impact on the economy will depend on various factors, including the degree of the interest rate hike, the responsiveness of consumers and businesses to higher borrowing costs, and the effectiveness of other monetary and fiscal policies in supporting economic growth. copied from chatgpt 9 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Inspirer1: 3:19pm On Mar 26 |
Geovanni412:thanks |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by porthouse7(f): 3:20pm On Mar 26 |
Amigoss:ebina pa e |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by routed: 3:21pm On Mar 26 |
OboOlora: What is MPR? Oya now! Tell us. Please, let people who attend day school comment. Yeye, pumping indeed! How old are you? 6 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Obierika(m): 3:23pm On Mar 26 |
adeabimbola700: 200 basis points essentially means 2% and and increase means that that the federal government wants to reduce the level of liquidity in the economy 1 Like |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Freethinker87: 3:23pm On Mar 26 |
grandstar: Mr Economist. While I understand the steps taken by the CBN to control inflation, I respectfully disagree with your perspective. Increasing MPR to 25% means that banks will offer loans at over 32%. This new interest regime will be detrimental to businesses that rely heavily on loans for their operations. With such high-interest rate, the cost of borrowing will go up, significantly reducing the overall liquidity available to businesses. This will certainly lead to a slow-down in business operations, entrepreneurship, and consequently the economy like Chief Tinubu promised during the campaign. Nigeria does not have an excess liquidity problem, we're suffering from a FX scarcity. It is highly unlikely that any legitimate business can survive, let alone thrive, under this condition. FGS businesses are struggling currently, with many multinationals shutting down operations in Nigeria. How much more SMEs? Instead of mopping up money from the system, providing financial support and grants to businesses and entrepreneurs can stimulate the economy and eventually strengthen the Naira, but No! let's use our scarce FX to sponsor Hajj tourism to Mecca and import foreign SUVs for legislators while the illegitimate President and his wayward son travel in a 70-vehicle convoy. 4 Likes 2 Shares |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Blazetrailer: 3:29pm On Mar 26 |
...your post below has shown your ignorance . In a galloping inflationary situation, monetary policies that curb spending are the best remedies. MrPristine: 6 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Annahh(f): 3:30pm On Mar 26 |
Freethinker87:Exactly. 2 Likes 1 Share |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by routed: 3:33pm On Mar 26 |
Inspirer1:What I'm watching out for since July is for the inflation to slam the brake. Just a month stagnation. Then Cardoso will smile and I'll smile. We are close . Alita continua, Victoria acerta 2 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by frankson1(m): 3:36pm On Mar 26 |
OboOlora: This is simple, what the FG is doing, is mopping up excess cash in the hands of people. 5 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Freethinker87: 3:40pm On Mar 26 |
Winning123: You're actually the olodo here. The FX currently in our foreign reserve, which our brilliant CBN Governor, who studied Business Admin due to his fear of mathematics, is using to defend the Naira was not earned through export or oil. It was a $3.3B loan from the AFDB. We are indeed borrowing money to defend the Naira, a political victory we can only celebrate for a week. How long will it be before our reserve depletes and we're back to zero? 2 Likes 1 Share
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Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Ijaya123: 3:43pm On Mar 26 |
jmoore: Who promised you petrol at N195 per litre? And can you name one county selling petrol at the equivalent of N195 per litre anywhere in the world? 3 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by frankson1(m): 3:43pm On Mar 26 |
MrPristine: Obviously, you don't know ANYTHING about this and you think you know, the reason you made a very wayward comment with so much authority. Just go ask a senior banker what this means and avoid asking obedients and haters. 2 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by Omoawoke: 3:43pm On Mar 26 |
jmoore: What does government do when inflation is rising,? Cut interest rate or hike it? You don’t know anything The world powers have been hiking interest rates to combat inflation since 2022, they are watching to see if inflation is reducing so they can begin cutting interest rate. Interest rate hike is done to mitigate against inflation and mop out money from the system 5 Likes |
Re: CBN Raises Benchmark MPR By 200 Basis Points To 24.75% by frankson1(m): 3:46pm On Mar 26 |
jmoore: Ohhh gosh! 🤦🤦🤦 |
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