Stats: 3,191,688 members, 7,945,119 topics. Date: Tuesday, 10 September 2024 at 11:27 AM |
Nairaland Forum / Nairaland / General / Business / CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels (15901 Views)
CBN Raises Interest Rate To 18.75% / CBN Raises Interest Rate To 15.5% To Curb Rising Inflation / CBN Raises Interest Rate To 14% (2) (3) (4)
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Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by IAmHim1: 3:34pm On May 21 |
Hmmmm CBN Let's analyse this move CBN made for a minute 1) people will find it difficult to borrow money from banks thereby making it difficult for new money to enter into the economy 2) This was a move by CBN to curtail inflation. commendable but the money has to match the goods else this action was a waste. Insurgency is the elephant in the pool https://www.nairaland.com/8081414/nigerias-inflation-state-federal-governments 3) New money is already in the system by means of loans as I explained comprehensively here https://www.nairaland.com/8080394/nigerias-inflation-what-uba-gtbopay And guess what...new money is continually going to be in the system as long as loans are being given out and fractional banking exists WHAT TO DO ABOUT THIS: make it easy for people to repay their old loans by reducing OR CANCELING the interest on LOANS YET TO BE REPAYED. This alone cancels out EXCESS money from the economy. learn about how that works here https://www.nairaland.com/8069458/wealth-series-pt-2-nigeria Issuing Loans was supposed to be a secret way known only to financial institutions to take money away from the system...by way of interest on these loans...but it's a debt based economy and debt is needed to stimulate the economy So what to do Fractional reserve banking is still gonna multiply the money regardless BECAUSE PEOPLE ARE STILL GONNA TAKE LOANS. the rich people that can afford the Loans!!! This only increases the wealth gap making the rich get richer and the poor getting poorer since the poor won't be able to afford to take such loans because of the interest in it a) Increase the reserve requirement to 50% upwards... b) make it easy to repay old loans. SUBSIDY SHOULD BE PAID TO THE BANKS ON OLD LOANS YET TO BE REPAID SO that the borrowers only have to pay the principal on loans BECAUSE IF THEY DEFAULT ON THEIR LOANS, new money has entered the economy...and if such money isn't backed by the production of local goods, more inflation kicks in AS I SAID EARLIER, insurgency is the elephant in the pool c) all of these points are useless if there is no production of local goods Farmer should be able to return back to their farms. Then Agricultural produce would then match the money in circulation...and if the agricultural products are excess, we export and gain forex! As I said , insurgency has been the elephant in the pool https://www.nairaland.com/8081414/nigerias-inflation-state-federal-governments 1 Like 1 Share |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by LaIabobo: 3:35pm On May 21 |
Paraman: Inflation is around 33% while costs of goods have risen over 250% Nigeria economy defeats even the best economic policy/principles. The problem cant be solved using inflation rate or reducing the amount of money in circulation. The fundamental issues to be addressed are insecurity, energy costs and stable exchange rate. 5 Likes |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by JuanDeDios: 3:36pm On May 21 |
giftbawa:Yes, it'll certainly be very bad for businesses that are servicing existing loans. |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by JuanDeDios: 3:38pm On May 21 |
bemeruca:It's not. But it's only a matter of time before it is if we don't get our act together. |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by Jocdon(m): 3:39pm On May 21 |
Khyrvxjzy:This is not about Igbos but about of your survival. hungry fool. 2 Likes |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by JuanDeDios: 3:42pm On May 21 |
dododawa1:No, not likely. None of the factors that should make food prices go down have been addressed. This announcement will only help bring in FPI, and even if that results in more dollar liquidity and some appreciation in the value of the naira, recent events tell us that will not lead to a significant reduction in food prices. 3 Likes |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by JuanDeDios: 3:43pm On May 21 |
higgs:This take is correct, in my view. |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by JuanDeDios: 3:45pm On May 21 |
LaIabobo:Correct. Fundamental issues have to be addressed. No short cuts. 2 Likes |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by bemeruca: 3:45pm On May 21 |
JuanDeDios: Nobody will get their act together. Soldiers are stupid, tribes are stupid, police are stupid, politicians are laughing all the way to the bank because they know our biggest curse is the multitude of tribes we have in this country and the selfishness that clouds our mind. You talk bad about the situation, yoruba man will attack you because it is their tribal man in charge of the country, igbo do the same thing. The problem is there, we leave it and fight ourselves, causing more problems 2 Likes |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by JuanDeDios: 3:48pm On May 21 |
bemeruca:Well, it's sad. But some societies have overcome similar problems. All it take is elite consensus. That's what we don't have at the moment. |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by ogolemati: 3:50pm On May 21 |
post=130068824: ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() 2 Likes
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Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by karkinase(m): 3:50pm On May 21 |
Patchy patchy policies.. how do you keep increasing interest rate when unemployment is at an all time high.. food security zero, power zero, insecurity high. raising interest rate simply means cost of production will increase and this will drive up price of goods and services.. creating more harsh economic conditions. How did we even get here as a country 😔 2 Likes |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by Brushstrokes20: 3:51pm On May 21 |
eBOLA on rampage! 💯💯💯🔊🔊🔊 |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by bemeruca: 3:52pm On May 21 |
JuanDeDios: What society with all this tribes that succeed in doing that? The UK, US and Canadian is becoming problematic as they get more culture. The tribalism in Nigeria is too much, couple that with greed and selfishness. If Biafra is created today, you will have another issue and new movement to create not briafa as a different country from South Biafra. |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by Treadway: 3:56pm On May 21 |
Lol. This is getting interestico. When cost of capital now stands at 27%, meaning lenders will charge between 32-35%, SMEs which are the productive sector don begin dey die be that na. When cost of capital alone has taken 35%, and other costs never even enter...meaning they either go public to raise equity, raise prices and pass the costs over to their goods/services, or just leave the game. Based on history, we can safely narrow it down to the last two options. Nigeria, the conundrum.🤣🤣🤣 2 Likes |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by Timmi: 4:00pm On May 21 |
Nwaokunkpara: obviously you lack understanding of simple economics. |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by WhizdomXX(m): 4:02pm On May 21 |
Paraman:Hopefully, this is Mays penultimate week already. |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by bet9ja(m): 4:06pm On May 21 |
Why can't they increase it by 1000% so that people will be discourage from lending. I don't expect much from Tinubu government. You can't give what you don't have |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by Trimjos: 4:11pm On May 21 |
Paraman: Phoolish phool |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by ttmax09(m): 4:11pm On May 21 |
Ebeano49:You said it well, but you missed the most important thing, Corruption. Without the death penalty strictly enforced for corruption and bribes, Nigeria not going anywhere no matter how beautiful the polices are. 4 Likes |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by NovusHomo(m): 4:16pm On May 21 |
Nwaokunkpara: Lie; its by 1.5%. |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by fullclub: 4:17pm On May 21 |
tuzeriouz: As a macro economic student.... It will help slow down the inflation as money will be sucked from the system. It's a contractionary monetary policy that makes less money available for borrowers and people will rather safe there funds than spend it as it guarantees more interest. But the downside is it slows down investments |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by Tonytonex(m): 4:19pm On May 21 |
Akwamkpuruamu:that is what they want na. |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by yemmywesey(m): 4:21pm On May 21 |
Paraman: It's a good step, but Nigeria should stop the importation of refined petroleum products by July too, its percentage of forex it needs can be up to 65% , that is the major forex drainer. |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by Blessedarethepe(m): 4:21pm On May 21 |
Paraman:when did the inflation of the country ever come down ![]() Did we ever have a deflationary trend in this country ![]() It will keep increasing, no doubt about it... |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by PHIPEX(m): 4:22pm On May 21 |
The CBN is effectively slowing down economic activities. Banks will raise their interest rates and scare businesses away. This will create further scarcity of goods and high cost of available ones since businesses and industries can't expand their productions. Nigeria wooes Continues |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by Ebeano49(m): 4:25pm On May 21 |
Imagine if the people causing this excruciating pain on Nigerians were people from the dot nation? Thank God we no follow for those way scatter Nigeria sha ![]() ![]() ![]() ![]() |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by Tonytonex(m): 4:26pm On May 21 |
fullclub:you mean that people will make profit for saving money in the bank? |
Re: CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels by annyz: 4:38pm On May 21 |
This instability is why Total left Nigeria to Invest hugely in Angola recently. 3 Likes |
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