If you are a borrowing customer of any of the Commercial banks in Nigeria, you may have received a letter from your bankers that advising you of an increase in the applicable interest on your loan/facilit(ies). If not, yours might be in mail. This will further increase the unit cost of products. The banks in their letter to our company last week gave the recent policy of 50% CRR on Government funds as the reason for the hike in interest rates.

And we expect the economy to grow and inflation reduced to a single digit when the cost of capital keep increasing by the day. I wonder which economic theory best describe this scenario.