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Nairaland Forum / Nairaland / General / Business / Interest Rates Will Still Go Up — Emefiele (12805 Views)
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Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 6:48am On Apr 17, 2016 |
9japrof: Government gave licences to 21 private investors to develop the refineries you seek. |
Re: Interest Rates Will Still Go Up — Emefiele by adekhingz(m): 6:48am On Apr 17, 2016 |
please this is not the time to blame emefiele. because if my o'level essentialeconomics textbook is still not outdated, raising interest rate is one monetary policy that can be used to counter inflation..... . I'm still waiting for him to increase direct tax self (as a fiscal policy)........ economics graduate, I stand to be corrected if that is not what you were taught during your undergraduate days 1 Like |
Re: Interest Rates Will Still Go Up — Emefiele by mrvitalis(m): 6:56am On Apr 17, 2016 |
mesoprogress:With what money will u do that?? |
Re: Interest Rates Will Still Go Up — Emefiele by Icecomrade: 6:57am On Apr 17, 2016 |
LastMumu: This comment just comfirmed to me that you are just a dumb person after reading all your previous comments 1 Like |
Re: Interest Rates Will Still Go Up — Emefiele by 9japrof(m): 6:58am On Apr 17, 2016 |
Quakertellicus1: Alright I agree with you, remember this private investors are business men who invest to make profits. have you for once asked why they never took Nigeria serious ? because we are operating a subsidy regime, no serious investor would take investing in Nigerian downstream attractive, the reason the past government wanted to remove subsidy. we play politics with our future in Nigeria 2 Likes |
Re: Interest Rates Will Still Go Up — Emefiele by saintkel(m): 6:58am On Apr 17, 2016 |
mesoprogress:Igbos r truly worth investing in but tribalism won't let us see that 1 Like |
Re: Interest Rates Will Still Go Up — Emefiele by Icecomrade: 6:58am On Apr 17, 2016 |
Quakertellicus1: So why have the refineries not been developed |
Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 6:59am On Apr 17, 2016 |
Icecomrade: Licences were issued less than a month ago. |
Re: Interest Rates Will Still Go Up — Emefiele by hrykanu231(m): 7:00am On Apr 17, 2016 |
LastMumu: When u use the word "Might" it spells uncertaintity. Well God will continually help us whether d storm |
Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 7:00am On Apr 17, 2016 |
9japrof: Yes...like I have said earlier elsewhere...subsidy has to go. Problem is.....Nigerians like their oil cheap. |
Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 7:03am On Apr 17, 2016 |
Quakertellicus1:Sure i did and it's the same olè of promises upon promises. Promises and plans that we've been hearing since last year. Do something, let's see the result. All they have done so far has been flip flops, total failures 1 Like |
Re: Interest Rates Will Still Go Up — Emefiele by Icecomrade: 7:04am On Apr 17, 2016 |
Quakertellicus1: Do you know how many licenses that have been issued before now. |
Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 7:06am On Apr 17, 2016 |
Icecomrade:Shut up, CBN increased MPR rate from 11% to 12% around January this year or so, how many banks passed the increased rates to their customers? If banks decide not to increase their interest rate even though they are now lending at a higher rate from CBN, what effect would this have on their books? It will eat up their profit, ode. |
Re: Interest Rates Will Still Go Up — Emefiele by Ushiefrank(m): 7:07am On Apr 17, 2016 |
The change we ask for is here * dancing skelewu God help us Nigeria need your intervention. |
Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 7:07am On Apr 17, 2016 |
sapiosexual1: Well....I ain't the Govt propaganda minister....but i know that if them are serious...it is going to take time. If nothing happens...2019 dey. |
Re: Interest Rates Will Still Go Up — Emefiele by Zdoh(m): 7:20am On Apr 17, 2016 |
This man is a leach. |
Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 7:30am On Apr 17, 2016 |
sanandreas: Port to another bank.No time!!! 1 Like |
Re: Interest Rates Will Still Go Up — Emefiele by 989900: 7:52am On Apr 17, 2016 |
Textbook economics. Who are they lending to? Who get the loans, and at what percentage? We have a faulty system! |
Re: Interest Rates Will Still Go Up — Emefiele by Adesiji77: 8:01am On Apr 17, 2016 |
He has given "orijo" of what will happen at the next MPC meeting |
Re: Interest Rates Will Still Go Up — Emefiele by Truly1: 8:06am On Apr 17, 2016 |
adekhingz:Text books solutions may not work for a developing economy like Nigeria where you have a lot of loopholes that has always been exploited by the rich few to the detriment of the larger society. We should begin to look in the direction of home grown economic solutions that would take care of our cultural & environmental factors - this is the way to go if we are to grow and develop economically as a nation as the America of this world can never offer a sincere help.! 1 Like |
Re: Interest Rates Will Still Go Up — Emefiele by plendil: 8:17am On Apr 17, 2016 |
Quakertellicus1: You mean almost 8 months a go, yet absolutely nothing, to the best of my knowledge has changed. http://www.vanguardngr.com/2015/08/buhari-approves-65-licences-for-private-refineries/ |
Re: Interest Rates Will Still Go Up — Emefiele by adekhingz(m): 9:09am On Apr 17, 2016 |
Truly1: i appreciates your comment. but let me give my little explanation why this textbook solution is practicable. as defined, inflation is a persistent rise in the market price of product and service (usually as a result of plenty money chasing few goods). in such sense, to correct the inflation, there is need to reduce the volume of money in circulation. but the problem with Nigeria is a case of inflation caused as a result of high cost of production (via the high exchange rate of naira to dollars as most of our raw materials are imported). who bears the burden?? FINAL CONSUMERS (that's we, the Masses) and that's why we are paying more to buy. to correct this, CBN via its monetary policy can raise interest rate (to discourage producers from buying more from abroad) and also reduce the giving of foreign exchange to producers. thus, forcing producers to seek for their raw material from our own country men........... #i stand to be corrected still* |
Re: Interest Rates Will Still Go Up — Emefiele by lashout1: 9:23am On Apr 17, 2016 |
It's time we look inward and see how pple response to the market in Nigeria and forget what text books and scholars derived based on the local response from their consumers. That interest rate shouldn't be below inflation I see as a local derivative and should vary with region. In a country like Nigeria, we don't care about the returns for our money in banks, even if interest rate is 100% bank deductions will still b more than the interest. My understanding in macro econs, indicators like saving, consumption, tax and investment are key in monetary policies. While CBN is trying to discourage consumption, from our local stand, increase in interest rate will locally discourage investment but by text book encourage savings (which is not attainable based on explanation above) this is because at 12% banks will demand you bring your grandma to secure a loan application yet frustrate one with hidden and administrative charges. Further increase will halt the spirit to borrow (for investment) that is dieing in us. I expected the CBN to cushion loan application requirements and availability to common man and not to the elites or microscopic few. because an increase in investment increases employment, disposable income and inturn encourage savings. My take. 1 Like |
Re: Interest Rates Will Still Go Up — Emefiele by lashout1: 9:40am On Apr 17, 2016 |
adekhingz: Though you are on track, to curbing inflation, one must not only reduce the amount of money in the system but can also increase the number of goods to restore people's purchase power. This is attainable by increasing investment. an increase in interest rate results to a decrease in investment and have nothing to do with sourcing of raw materials locally. 1 Like |
Re: Interest Rates Will Still Go Up — Emefiele by bigtt76(f): 10:23am On Apr 17, 2016 |
So when you don't believe the current monetary policy being pushed will be in our long term interest, don't you think the person pushing it, though more learned than you are, ought to go and you replacing him? Afterall he couldn't think of any better solution and explanation than you just did now LastMumu: |
Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 11:27am On Apr 17, 2016 |
plendil: It is one thing to get a license to build refineries, another to get funding, environmental impact assessment, etc., especially when govt is not funding you, and when thanks to fall in oil price, forex is scarce. For now, we have to remove subsidy. |
Re: Interest Rates Will Still Go Up — Emefiele by adekhingz(m): 11:29am On Apr 17, 2016 |
lashout1:thumbs up bro.....you are right!!! the economy is very complex. it's hard to proffer any solution without causing another problem........emefiele is in the system, and we hope e makes the right decision..... all is well |
Re: Interest Rates Will Still Go Up — Emefiele by Chukzyfcb(m): 11:58am On Apr 17, 2016 |
LastMumu:No I don't agree with you. Banks will collect millions from their customers through fixed deposits @ meagre 3-6% and lend the money back to individuals @ 25% , that's a massive GAIN for the bank!!! How does that eat up the profit? Even when the MPR is 12% and rising. The rate at which they borrow from individuals or fellow bank is still very low compared t the rate at which they lend making the profit margin huge. |
Re: Interest Rates Will Still Go Up — Emefiele by Jacko1(m): 11:59am On Apr 17, 2016 |
All of u saying oil price crash Oilbis it not 40.3 dollar per barrel its goin up The problem is buhari and banks Jah wil punish nigerian bank executives They are increasing their income thru fx sale We thot curbin bdc wil help the economy but bamks are doin worse Makin not jus infividuals but conglomerates queue for fx These conglomerates if they leav nigeria wat businesses do our banks have left All lpo idf..cdf is done wif conglomerates.... But stupid banks make dem source fx at premium rates Efcc u ppl hav not seen fraud.... Wt cbn n bank execs are doing wil blow ur mind 1 Like |
Re: Interest Rates Will Still Go Up — Emefiele by Chukzyfcb(m): 12:07pm On Apr 17, 2016 |
lashout1:It doesn't really affect investors in the money market, but to investors in other sector where loans will be needed to kickstart such investment (eg real estate), it would affect. This news is good for those investors playing in the money market. Coz it means higher interest rate resulting to a higher yield/profit. Inflation cannot be @ 12% whereas my money in fixed deposit/Treasury bills is growing @ 7%. It implies I'm losing 5% . To move along with inflation & to maintain my purchasing power. My interest rate (r.o.I) has got to be equal or overtake the Inflation rate. |
Re: Interest Rates Will Still Go Up — Emefiele by olubenjazzy(m): 12:07pm On Apr 17, 2016 |
sanandreas: Don't what First bank is charging u for o But my own being pissed about first bank is them alerting me 10 to 12 times for a single debited or credited issue in my account. And they will still charge me for their own error. I dey fear to even receive payment with the acct now sef |
Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 12:15pm On Apr 17, 2016 |
Chukzyfcb: Well you are right to a certain extent, Yes the bank makes crazy earnings from the huge rate they charge customers in comparison to what they pay investors, but the truth is that most of those loans are actually non-performing, especially now when the economy is in a pretty bad shape. Also, almost all banks have foreign loans they are servicing, this has left them open to huge foreign exchange loss since they need to source for dollars to service the loans. Things ain't as easy or smooth as they seem. |
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