AnotherBoss:
Nawa

DONSMITH123:

yea, he's trying but Baba is unpredictable

Bros you and the person you quoted are the same.

SeverusSnape:


Bros you and the person you quoted are the same.

you get work so?

That's good.

DONSMITH123:

you get work so?

No, I no get work.
Oya come employ me for your company.

SeverusSnape:

No, I no get work.

Oya come employ me for your company.

apply then

ikbnice:
If it won't help strenghen the naira against the dollar,

If it won't help us in the fight against terrorism,

If it won't help eradicate poverty,

If it won't help bring stable electricity,

If it won't help bring down the price of petrol,


then ... It doesn't benefit me.

Our banks have been surviving on government funds all this while which have made them loose focus on the economy responsibilities. To cushion the effect on them, CBN has reduced lending rate to the banks as well as cash reserve ratio to hold in with CBN thereby making the banks lend to SME at a lower rate as well and have enough money to lend. On the long term this will have a positive effect on the economy as well as its citizens. Banks should start lending SMEs and not the Dangotes and Otedolas

The rate should be 8 percent not 11 percent. Small progress, thank you CBN governor.

A true patriot.

Too little too late if you ask me . . . . . they should consider 'quantitative easing' (printing money and then handing it to the right people to invest)

ify2016:
What is the impact on average Nigerians suffering in the street. Hope is not another politics of deceit.




11% indeed!!!!.


9ja go better no matter what.

Small businesses can borrow more to create jobs.

sharpman1:


What sort of kindergarten analysis is this

Lol, Sharpman1...Kindergarten analysis may be the best for people like u who have nothing so say regarding the move. Unfortunately we r not able to read ur opinion nor view so perhaps it it will be at ur best interest to know analysis don't need to be complex but that kindergarten analysis breaks it down for smart (people who r willing to learn) peoples understanding.

ralphblac:
the impact of this policy are 1.it gives commercial bank more fund at their disposal for lending 2.it reduce high lending rate so user of fund can access it at a low interest rate. 3.it will make money to be available in circulation.

So much money in circulation, isn't that gonna lead to inflation?

Bluffly:


Our banks have been surviving on government funds all this while which have made them loose focus on the economy responsibilities. To cushion the effect on them, CBN has reduced lending rate to the banks as well as cash reserve ratio to hold in with CBN thereby making the banks lend to SME at a lower rate as well and have enough money to lend. On the long term this will have a positive effect on the economy as well as its citizens. Banks should start lending SMEs and not the Dangotes and Otedolas

Thanks for the updating my knowledge. I think i've learnt something.

Using paracetamol to cure malaria.

You want the to grow the same businesses you are crippling with your knee jack forex policies?

OsamaB:

Lol, Sharpman1...Kindergarten analysis may be the best for people like u who have nothing so say regarding the move. Unfortunately we r not able to read ur opinion nor view so perhaps it it will be at ur best interest to know analysis don't need to be complex but that kindergarten analysis breaks it down for smart (people who r willing to learn) peoples understanding.

You don't seem to understand.

My point is your comment does not in anyway have any bearing to the move by the CBN (i.e reducing MPR from 13% to 11% and reducing CRR from 25% to 20%).

Before i decide to engage you, can you please define and explain what the MPR and CRR means and how they impact interest rates and the economy in general. (hint: feel free to use google).

OsamaB:


So much money in circulation, isn't that gonna lead to inflation?

Investing in consumption drives inflation. Investing in production does not drive inflation.

sharpman1:


You don't seem to understand.

My point is your comment does not in anyway have any bearing to the move by the CBN (i.e reducing MPR from 13% to 11% and reducing CRR from 25% to 20%).

Before i decide to engage you, can you please define and explain what the MPR and CRR means and how they impact interest rates and the economy in general. (hint: feel free to use google).

Olodo!!!

So obvious that you where looking for an opportunity to insult someone it's back at your daddy

sharpman1:


Investing in consumption drives inflation. Investing in production does not drive inflation.

And the last I checked, we are still a high consumption country. I thought I just told you told u "your Daddy "

OsamaB:


And the last I checked, we are still a high consumption country. I thought I just told you told u "your Daddy "

And if the objective of the government is to encourage investment in production?

Is that not the reason for driving down deposit rates and now lending rates? Won't this encourage people to engage in production rather than saving money in treasury bills and fixed deposits since the rates are now quite low? Consider that the cost of funds is now expected to go down slightly.........

DONSMITH123:
The Central Bank of Nigeria ended its Monetary Policy Committee meeting in Abuja on Tuesday with a resolution to reduce Monetary Policy Ratio, popularly called lending rate, from 13 per cent to 11 per cent.

The CBN governor, Godwin Emefiele, who announced the resolution of the Committee at the end of its meeting, also said members agreed to cut down on Cash ​Reserve ​Ratio for public and private sectors from 25 to 20 per cent.

The CRR is a monetary policy tool used to set the minimum deposits commercial banks must hold as reserves, rather than lend out during any given period.

Mr. Emefiele said that part of the key resolutions during the meeting was for the CBN to focus on playing its primary role of stimulating the growth of the economy by providing the needed funds commercial banks would use to to promote the continued operation of the real sectors of the economy.

He identified the sectors that would benefit from the special funding support from the CBN to include infrastructure (with emphasis on power), agriculture and the solid minerals.

Cc: lalasticlala

http://www.premiumtimesng.com/business/banking-and-finance/193843-cbn-reduces-lending-rate-to-11-percent.html

The CBN should be realsitic on economic issues. It should continue to drive towards a single digit interest rate to stimulate growth in the economy not this dead policies they are bringing. I wish the laws should be amended to to allow economist head the Central Bank instead of bankers. They dont see beyond their noses in most cases.

sharpman1:


And if the objective of the government is to encourage investment in production?

Is that not the reason for driving down deposit rates and now lending rates? Won't this encourage people to engage in production rather than saving money in treasury bills and fixed deposits since the rates are now quite low? Consider that the cost of funds is now expected to go down slightly.........

You do have a point there, that's what I meant by someone giving a SWOT analysis because I gave the weakness and Threat of the move and that my friend is an opportunity and potential strength. Please try as much as possible not to insult or discourage people to comment. Urs may be optimistic while others may be pessimistic, but a combination of this is what can make Nigeria great some day

OsamaB:


You do have a point there, that's what I meant by someone giving a SWOT analysis because I gave the weakness and Threat of the move and that my friend is an opportunity and potential strength. Please try as much as possible not to insult or discourage people to comment. Urs may be optimistic while others may be pessimistic, but a combination of this is what can make Nigeria great some day

Sorry about that.......that was my finger itching. I tried to remove it before you quoted.

sharpman1:


Sorry about that.......that was my finger itching. I tried to remove it before you quoted.

It's ok bro, if you don't mind, I am gonna follow you. U have very great views regarding issues. Cheers

I wuld hav been happy if it were 5%.

This is a welcome development. I was not even expecting them to go this low.

@Topic: BTW, a lot of people may assume wrongly that CBN has reduced the lending rate of commercial banks

kennydee05:

Consult your Economics textbook

He asked respectfully and you seem to know much about your economics, how about you enlighten him?

Now people would be able to borrow at 11% to buy Tb at 13% or even mutual funds. I see a lot of internal lending deals in the banks.

A situation were a manager would lend himself #500M and make 2% of that right away. Cool #10M!

sonnie10:
Now people would be able to borrow at 11% to buy Tb at 13% or even mutual funds. I see a lot of internal lending deals in the banks.

A situation were a manager would lend himself #500M and make 2% of that right away. Cool #10M!

LOL......MPR @ 11% does not mean banks will lend @ 11%.

Also, TBill rate for 91days has dropped to about 5.6%

If you ask me, this has absolutely no effect eventually on small businesses because it's just the banks making the profit as usual. Until our greedy banks decide to rid their ways and help small business, this is likely to have any effect.

akbahbah:
Can somebody pls enlighten me on how this affects common citizens in d country

it means d cost of doing business will be reduced, investors will pay less interest on money borrowed thereby reducing d costs of commodities on d long- run, hope it helps u to understand better

Bamz:
LOL some people be commenting but have not the slightest idea what the MPR reduction portends.

You just aired my mind. Can somebody break this news down to a level 'mama put' can understand? Last check at the bank today shows interest rate is still 25% at Ecobank.

This is good news...Change we are witnessing.