porthouse7:
ebina pa e

Gbenu oshi soun

OboOlora:

Trial and error financial techniques.
Pump $$$ from foreign reserves to save a dying naira so people can applaud you for a week.
Then watch the same $$$ rise in the next month and blame citizens for not buying unavailable local goods.

It will be interesting to see your cv so that we can know how brilliant you are and your success story in positions you held.

SmartyPants:


You have no clue. Inflation is sky high and you are talking about folding 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?

That moniker you quoted and as well as some other monikers on this thread, have no clue and will never understand.

Winning123:


Olodo! Pump dollars from foreign reserves, the reserves you kept I guess. The reserves that can only support a month import. How did we get to this level in Nigeria with young people who can think in spite of huge money spent in educating them.

It is not because they cannot think.
It is actually because this generation sees nothing wrong in exhibiting their ignorance to high heavens openly and shamelessly.

That is why it is easy for a stupid person to make a stupid comment expecting stupid likes from fellow idiots.

Putindbutt:

Another dummy, so many dummy on this forum.

Truly, and it's getting worse every day.

Amigoss:


Gbenu oshi soun

go find work

Vision101:

It will be interesting to see your cv so that we can know how brilliant you are and your success story in positions you held.

We assume too much on this platform.

What gives you the impression that he has a CV?
What makes you think he is not typing his comment as a boi boi from one two by two apprentice shop?

What makes you think he has more than a school cert?

Emmastan291:
Somebody should help me explain this in football terms

CBN is lending to banks at 25%, banks will lend to businesses with an interest, so 32% is a fair estimate. Some businesses won't survive such high interest repayment so they'll fold. Businesses who do, will pass that cost to their customers.

So in football terms, expect prices of locally produced goods and services to go up. Expect layoffs, poverty and austerity in the coming months. While Chief Tinubu celebrates lowering inflation rate in Aso rock.

Elliotwaveforec:
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!

I think it's going to be gradual. After this period, they will study and see how well it has done.

Amigoss:
Gbajue policies when inflation is still on the rise and people on the streets are screaming ebi'n pawa

And thats why he is raising the mpr

MrPristine:
These clowns have clearly lost the plot, this is a time that they should be working to reduce interest rates and encouraging more people to go into productive businesses to help grow the economy. Instead the clueless charlatans are doing the exact opposite.

Are u the one borrowing from cbn?

porthouse7:
go find work

Lo WA SE fun iyalaya e

sameoldguy:
Dollar/Naira is going down, but prices still remains high in Nigeria.

It is because greedy Nigerians who should rather look themselves in the mirror but will rather blame everyone except themselves made it so.

The vulcanizer who wants to collect N500 to gauge a tire blaming the rise in the exchange rate belongs in this category.

The one who has not seen a greenback before but is shouting at the roof top belong in this category.

Elliotwaveforec:
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!

Why is the inflation rate high?
Why did the Naira fall?

kpompey:
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.

Chai! Where do they recruit you agbadorians from?

Inspirer1:
Implications?

I have done the analysis of the implication somewhere before.

Inspirer1:
Implications?

Savings and investment in money market instruments will become more attractive because of higher yield.

As more money is invested there will be less money in circulation ultimately inflation rate will lower.

Regarding exchange rate, the lower the volume of naira in circulation the higher the value of naira to other currencies (all things being equal)

GrammarNazi1:
Will this have positive implications?

Yes.... it's a tool to fight inflation and high exchange rate because it reduces loose money in circulation.

MrPristine:
These clowns have clearly lost the plot, this is a time that they should be working to reduce interest rates and encouraging more people to go into productive businesses to help grow the economy. Instead the clueless charlatans are doing the exact opposite.

Clueless charlatans? Members of the bankers committee?

Your suggestion: make savings unattractive so that the economy will be awash with high volume of naira in circulation to drive up inflation and exchange rate higher.

Between you and the members of the bankers committee who is the clueless one?

Social media....

iichidodo:
This helps to squeeze out and mop up any loose naira lying about in the economy for speculators to gamble on dollars.I hope this increases the momentum of the current crash of dollar from now to the nearest future and we don't have to beg France to use CFA anymore.

How do you pay back after mopping up everything with a promise of 24% interest??

Freethinker87:


CBN is lending to banks at 25%, banks will lend to businesses with an interest, so 32% is a fair estimate. Some businesses won't survive such high interest repayment so they'll fold. Businesses who do, will pass that cost to their customers.

So in football terms, expect prices of locally produced goods and services to go up. Expect layoffs, poverty and austerity in the coming months. While Chief Tinubu celebrates lowering inflation rate in Aso rock.

It also means that banks can give their customers higher interest rates.

Agbdo cbn Governor

Omoawoke:


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

You that know something, has inflation reduced since they increased interest rate before this current one?

Copy and paste won't solve anything.
Inflation has many types. Have you heard about cost push inflation?
If you are asked to explain how interest rate will reduce the price of petrol and diesel which are the major factors driving cost of production, you will fail woefully to explain.

fykes:
How exactly is the naira strengthening while the price of commodities is increasing?

The volatility has abated but the decrease will not come immediately because our traders will be saying that they bought the goods at old rate.

The reduction will come most likely when they replenish stock.

jmoore:

It means interest rate has increased.
It will scare people from borrowing.
And those who borrow will have to increase their cost price which will increase the selling price, thereby making inflation higher.

No sir.

ppogba:


We assume too much on this platform.

What gives you the impression that he has a CV?
What makes you think he is not typing his comment as a boi boi from one two by two apprentice shop?

What makes you think he has more than a school cert?

I wonder ooo

adeabimbola700:
Economists in the house, please what does this mean to the Nigerian Economy?

This means that the interest rate is increased to help liquidate the amount of money in circulation thereby forcing the purchasing power .i.e inflation down. This is a medium term plan of reducing the galloping inflation been experienced in the country

Ijaya123:


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?

Lack of comprehension is failing most of you.
The topic is about interest rate and inflation.

Petrol was previously sold at 195 naira. The price went to 650 naira. A business using petrol at 195 naira and that using petrol at 650 naira, which should have a cheaper price?
How can higher interest rate make the business using petrol at 650 naira to sell at the price of the business using petrol at 195 naira?

sameoldguy:
Dollar/Naira is going down, but prices still remains high in Nigeria.

Are you for real? Where is the dollar going down. Dollar went from 1700 to 1400 naira, the next month it went up to 1600 naira, and now it is around 1396 naira?

Is that going down? That is price instability, and its bad for the economy. How do you expect prices of imported commodities to go down.

Vision101:

Yes.... it's a tool to fight inflation and high exchange rate because it reduces loose money in circulation.

Thanks for the explanation.

Vision101:
No sir.

If you write 'No sir' in an exam, you will get f9.

adeabimbola700:
Economists in the house, please what does this mean to the Nigerian Economy?

It will discourage investors from taking loans from banks, because with the increase in MPR, banks are now paying 24% interest on loan to CBN instead of 22%, remember, it was 18% two months ago.

It is a monetary policy that discourage the circulation of money in the economy, but with it negative effect of discouraging investment, is that what we need?

Imagine you approach your bank for loan of 1m naira, and your bank ask you to pay 340k interest on loan, because the MPR have been increased and by implication the bank interest rate. Sure you will not take that loan. This brings about decrease in investment, employment and GDP growth.