Interest Rates Will Still Go Up — Emefiele - Business

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Interest Rates Will Still Go Up — Emefiele by Nobody: 4:07am On Apr 17, 2016

http://www.punchng.com/interest-rates-will-still-go-up-emefiele/

The Governor of the Central Bank of Nigeria, Godwin Emefiele, has revealed that the country’s monetary policy rate will still have to go up.

He said based on rising inflation rates, the monetary policy rate would have to rise.

He was speaking on Saturday at the International Monetary Fund headquarters in Washington.

He said, “Truly, Nigerians really expect that if they want to access finance, they should do so under a low interest regime.

“But of course you will agree with me that with the increase in inflation rate, from about 11.38 (percent) it was in February to almost about 12.8 in march, naturally what you find is that interest rate would have to still go up sort off.

“When you have the MPR below inflation rate, it is not a model that is acceptable.”

Higher interest rate is expected to discourage lending, but Emefiele has assured Nigerians that the CBN under his leadership will continue to do all it can to ensure that the sectors of the economy that grow the domestic industry, get needed interventions.

“At the level of the CBN, we would continue, as much as possible to see how we can continue to increase our interventions to certain targeted areas of the economy,” he said.

“Particularly agriculture, mining, the real sector, areas that would boost domestic production, areas that would help to support our push away from relying on oil.

“Where we are seeing goods that can be produced in the country, where we find investors that are investing in domestic production rather than following up on exports, then we would continue to give those kind of investors support.”

In November 2015, the CBN cut interest rates from 13 percent to 11 percent – for the first time in six years – in order to free up some money for economic growth.

In March, the bank raised the rate to 12 percent, in anticipation of budget passage and flow of liquidity into the economy.

Meanwhile, the trade volume between Nigeria and the United Kingdom stood about £6bn (about N2.4tn) in 2015, UK Minister for International Development, Nick Hurd, has said.

Re: Interest Rates Will Still Go Up — Emefiele by Luckylife(m): 4:22am On Apr 17, 2016

Really ! That's not part of the campaign promise.

13 Likes

Re: Interest Rates Will Still Go Up — Emefiele by mesoprogress(m): 5:31am On Apr 17, 2016

Sorry sir, our economy will continue to dance for a long time unless crude oil prices rise. It's not rocket science, we are an import dependent country with less dollar to meet up with our purchases. I'm pretty sure you may be printing more bills to meet up with national recurrent debt as well. With these two, inflation is bound to happen.

Simple things that can help - strengthen infrastructure! Remove roadblocks in our regulations! Build a formidable road network , we have all materials needed. Decentralize electricity production and distribution, build multiple micro turbines in flow stations where you flare gases, small rivers, allow easy contribution from private investors. Encourage building at least five Modular refineries in each state. Support ingenuity of Igbos, make a very conducive environment for them to manufacture and trade easily. They are your only hope of breaking free from oil dependence!!!

55 Likes 2 Shares

Re: Interest Rates Will Still Go Up — Emefiele by modath(f): 5:38am On Apr 17, 2016

mesoprogress:
Something is wrong

Yep,

1. Oil price crashed! cool

2. Prodigal leaders squandered savings.

*Caveat*

“At the level of the CBN, we would continue, as much as possible to see how we can continue to increase our interventions to certain targeted areas of the economy,” he said.

“Particularly agriculture, mining, the real sector, areas that would boost domestic production, areas that would help to support our push away from relying on oil.

OP,

There are more "wailable" news in today's papers try gather all at once & start a parry. wink

4 Likes

Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 5:38am On Apr 17, 2016

Which way Nigeria? May God lead us through

Re: Interest Rates Will Still Go Up — Emefiele by bigtt76(f): 5:41am On Apr 17, 2016

Wonder what this one is still doing in office undecided

ought to have been sacked long ago angry

5 Likes

Re: Interest Rates Will Still Go Up — Emefiele by sanandreas(m): 5:50am On Apr 17, 2016

Do bank loan money to the poor? First Bank please stop charging me unnecessarily. I wouldn't mind keeping my cash under my pillow.

19 Likes

Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 5:56am On Apr 17, 2016

bigtt76:
Wonder what this one is still doing in office ought to have been sacked long ago

Can you do a better job, if not kindly shut up!

13 Likes 1 Share

Re: Interest Rates Will Still Go Up — Emefiele by bigtt76(f): 6:19am On Apr 17, 2016

I don't have much to say to you this lovely Sunday morning any more than your moniker says.

LastMumu:
Can you do a better job, if not kindly shut up!

11 Likes 1 Share

Re: Interest Rates Will Still Go Up — Emefiele by veekid(m): 6:26am On Apr 17, 2016

na u sabi

Re: Interest Rates Will Still Go Up — Emefiele by biggiyke(m): 6:26am On Apr 17, 2016

Re: Interest Rates Will Still Go Up — Emefiele by FreemanDave(m): 6:28am On Apr 17, 2016

Brace yourselves ...

Winteris coming...

Re: Interest Rates Will Still Go Up — Emefiele by kelvino41: 6:28am On Apr 17, 2016

THIS EMIEFELE MAN SEF, WETIN BE YOUR PROBLEM ?? LAZYING ABOUT... HIS KIND OF PERSON (as a lecturer) WOULD FAIL STUDENTS OVER AND OVER AGAIN, YET HE CAN'T APPLY THE SO CALLED KNOWLEDGE HE GAINED FROM EDUCATION

1 Like

Re: Interest Rates Will Still Go Up — Emefiele by FreemanDave(m): 6:29am On Apr 17, 2016

bigtt76:
I don't have much to say to you this lovely Sunday morning any more than your moniker says.

GBAM

1 Like

Re: Interest Rates Will Still Go Up — Emefiele by hrykanu231(m): 6:31am On Apr 17, 2016

What then is the fate of young entrepreneurs, who want to borrow funds from the bank to help build up their businesses?

1 Like

Re: Interest Rates Will Still Go Up — Emefiele by jerryunit48: 6:31am On Apr 17, 2016

I thought By now the Dollar would have been one Naira ,Still waiting for someone to blame GEJ

12 Likes

Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 6:32am On Apr 17, 2016

makes sense

Re: Interest Rates Will Still Go Up — Emefiele by yinkslinks(m): 6:35am On Apr 17, 2016

Its better for you but what if the owners come for it? grin

sanandreas:
Do bank loan money to the poor? First Bank please stop charging me unnecessarily. I wouldn't mind keeping my cash under my pillow.

1 Like

Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 6:35am On Apr 17, 2016

Confused fellow, confused government. Trial and error policy

2 Likes

Re: Interest Rates Will Still Go Up — Emefiele by spartanobad(m): 6:37am On Apr 17, 2016

:oGo Up :oGo Up

My people will agree with me that this it not the CHANGE they voted for...

Rich getting Richer and the poor getting Poorer
that's not good for a developing country like us.

2 Likes

Re: Interest Rates Will Still Go Up — Emefiele by DickDastardly(m): 6:39am On Apr 17, 2016

modath:

Yep,

1. Oil price crashed!

2. Prodigal leaders squandered savings.

*Caveat*

[b][/b]

OP,

There are more "wailable" news in today's papers try gather all at once & start a parry.

Not easy defending a lying government during visible famine! Ask the tortoise. Keep it up dearie. Don't envy you though undecided

18 Likes 1 Share

Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 6:40am On Apr 17, 2016

kelvino41:
THIS EMIEFELE MAN SEF, WETIN BE YOUR PROBLEM ?? LAZYING ABOUT... HIS KIND OF PERSON (as a lecturer) WOULD FAIL STUDENTS OVER AND OBEY AGAIN, YET HE CAN'T APPLY THE SO CALLED KNOWLEDGE HE GAINED FROM EDUCATION

You did not read the article..

Higher interest rate is expected to discourage lending, but Emefiele has assured Nigerians that the CBN under his leadership will continue to do all it can to ensure that the sectors of the economy that grow the domestic industry, get needed interventions.

“At the level of the CBN, we would continue, as much as possible to see how we can continue to increase our interventions to certain targeted areas of the economy,” he said.

“Particularly agriculture, mining, the real sector, areas that would boost domestic production, areas that would help to support our push away from relying on oil.

“Where we are seeing goods that can be produced in the country, where we find investors that are investing in domestic production rather than following up on exports, then we would continue to give those kind of investors support.”

You know what does that mean.....it means more jobs, more employers.

1 Like

Re: Interest Rates Will Still Go Up — Emefiele by powerfulsettingz: 6:41am On Apr 17, 2016

PARTY FOR THE FOOLS

Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 6:41am On Apr 17, 2016

jerryunit48:
I thought By now the Dollar would have been one Naira ,Still waiting for someone to blame GEJ

It would be if the CBN's plan to give targeted loans to local producers....as seen in the article.....works.

Re: Interest Rates Will Still Go Up — Emefiele by victorazy(m): 6:41am On Apr 17, 2016

Now I know that this man is honest.

Dollar will get to N500, who will bet me?

4 Likes 1 Share

Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 6:41am On Apr 17, 2016

bigtt76:
I don't have much to say to you this lovely Sunday morning any more than your moniker says.

Good! Exactly what I want, just shut up! angry

As long I think tinkering with the Monetary policy rate would cushion the alarming increase of inflation of recent in this country, I still believe it is not a viable solution in the long run as the main cause of the inflation is not being tackled. The kind of inflation we are experiencing now is a demand-pull inflation caused by the drop in value of Naira, the astronomical rise in value of dollars and the forever bedevilling balance of payment deficit conundrum. Until this problem is tackled, we will continue to experience increase in inflation.

3 Likes

Re: Interest Rates Will Still Go Up — Emefiele by pilarnig(m): 6:43am On Apr 17, 2016

mesoprogress:
Sorry sir, our economy will continue to dance for a long time unless crude oil prices rise. It's not rocket science, we are an import dependent country with less dollar to meet up with our purchases. I'm pretty sure you may be printing more bills to meet up with national recurrent debt as well. With these two, inflation is bound to happen.

Simple things that can help - strengthen infrastructure! Remove roadblocks in our regulations! Build a formidable road network , we have all materials needed. Decentralize electricity production and distribution, build multiple micro turbines in flow stations where you flare gases, small rivers, allow easy contribution from private investors. Encourage building at least five Modular refineries in each state.

Support ingenuity of Igbos, make a very conducive environment for them to manufacture and trade easily. They are your only hope of breaking free from oil dependence!!! ...

you made a valid points but I disagree with you on the yebos part. any youth from any tribe is a good entrepreneur that if supported will do well[b]

mesoprogress:
Sorry sir, our economy will continue to dance for a long time unless crude oil prices rise. It's not rocket science, we are an import dependent country with less dollar to meet up with our purchases. I'm pretty sure you may be printing more bills to meet up with national recurrent debt as well. With these two, inflation is bound to happen.

Simple things that can help - strengthen infrastructure! Remove roadblocks in our regulations! Build a formidable road network , we have all materials needed. Decentralize electricity production and distribution, build multiple micro turbines in flow stations where you flare gases, small rivers, allow easy contribution from private investors. Encourage building at least five Modular refineries in each state.

1 Like

Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 6:43am On Apr 17, 2016

Kind of sad reading the comments by the way.

1 Like

Re: Interest Rates Will Still Go Up — Emefiele by 4nobody4every1: 6:45am On Apr 17, 2016

Reading

Re: Interest Rates Will Still Go Up — Emefiele by 9japrof(m): 6:45am On Apr 17, 2016

mesoprogress:
Sorry sir, our economy will continue to dance for a long time unless crude oil prices rise. It's not rocket science, we are an import dependent country with less dollar to meet up with our purchases. I'm pretty sure you may be printing more bills to meet up with national recurrent debt as well. With these two, inflation is bound to happen.

Simple things that can help - strengthen infrastructure! Remove roadblocks in our regulations! Build a formidable road network , we have all materials needed. Decentralize electricity production and distribution, build multiple micro turbines in flow stations where you flare gases, small rivers, allow easy contribution from private investors. Encourage building at least five Modular refineries in each state. Support ingenuity of Igbos, make a very conducive environment for them to manufacture and trade easily. They are your only hope of breaking free from oil dependence!!!

the area you talked about decentralization of power got me, sometimes I ask ma self whether we have leaders really that can think outside the box. We are in Nigeria suffering fuel crisis when we can develop modular refineries on a short term within six months and avert fuel crises we have been suffering for ages.

No way buhari nor his minsters can think towards there. Mark ma words if the government in the centre can champion resource control, decentralization of power, believe you me in 10 years Nigeria would be a better place

1 Like

Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 6:46am On Apr 17, 2016

sapiosexual1:
Confused fellow, confused government. Trial and error policy

You did not read the article.

The government has been talking about diversificaiton.....and if you took the time to read further....

At the level of the CBN, we would continue, as much as possible to see how we can continue to increase our interventions to certain targeted areas of the economy,” he said.

“Particularly agriculture, mining, the real sector, areas that would boost domestic production, areas that would help to support our push away from relying on oil.

“Where we are seeing goods that can be produced in the country, where we find investors that are investing in domestic production rather than following up on exports, then we would continue to give those kind of investors support.”

In other words....CBN is going to favour local producers.

We are going to try to end over-importation.

Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 6:46am On Apr 17, 2016

hrykanu231:
What then is the fate of young entrepreneurs, who want to borrow funds from the bank to help build up their businesses?

It might not necessarily affect the finance of young entrepreneurs. Some banks would not increase their interest rate despite the increase in MPR, na their bottom line go suffer sha.

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