lomprico:
Ayam not undastanding !

Izit dat money deposited accumulates 18.75% interest rate or I dunno

Those borrowings money from the bank will pay high interest on the money. It is not a good news for business people and those borrowings money to buy house.

This is done because of inflation

iamdapsyj:


Yea, too much cash in the system which is affecting inflation.

Yeah, the alleged 150b a frontline politician warehoused along with others, some 70, 40b etc. Money they could not spend due to Emefieles new naira notes.
Those funds are likely being changed to dollars, pounds, euros for easy management. Possibly why naira is crashing everyday against the dollar.
Too much cash too in circulation causing inflation.

nlfpmod:


https://dailypost.ng/2023/07/25/cbn-mpc-raises-interest-rate-to-18-75/

Let the poor breath. Don't Suffocate them...

GRACEGLORY:
What!


How do you intend to cool the economy. Now it becomes more expensive to borrow money, consumers will definitely refrain from making purchases and spending reduces. Yet fuel price is alarming.

This rate hike won't bring down pump price, will it?

No, this is the right move. Long, long overdue.
Government should also be interacting with industry.... almost on a daily basis because we are virtually running a war time economy.

1Alex:
OK. Very very soon. Cotonou will be the new UK, Canada and US.

All japa na japa.

But before we japa, this 18.75% interest rate must favour me and my family

Let me goan Improvise on how we are going to tighten and increase the Requirements for the Visa.

It's Cashout time.

godwon01:
Those borrowings money from the bank will pay high interest on the money. It is not a good news for business people and those borrowings money to buy house.

Chai! Tifnubu wants to recover what he spent b4 he is kicked out

Nigeria una go dey fine las las. Stop complaining just find yourself something to do and God go bless the work of your hand.
This policy has its positive and negative implications, there is nothing much you can do about it.
Just put on your thinking hat that is all.

Yet banks pay less than 10% on your savings and nearly 30% on loans
No be stealing be that’v

NairaGPT:
The effect of this policy:

1. Borrowing becomes costlier: Poor individuals who rely on loans or credit for various needs may face higher interest rates on their loans. This can lead to increased repayment burdens and make it more difficult for them to access credit for essential expenses or investments.

2. Reduced spending power: As borrowing costs rise, overall consumer spending may decrease. This can lead to higher prices for goods and services, affecting the purchasing power of the poor and potentially making it harder for them to afford basic necessities.

3. Impact on employment: If businesses face higher borrowing costs due to increased interest rates, they may be less likely to expand or invest in new projects. This can result in slower job growth or even job losses, affecting the employment prospects of the poor.

it seems Tinubu inherit Buhari's advisers ,this policies will continue to create hardship, now if Petroleum importers have to source funds at high interest rate add to high exchange rate please tell me the outcome on Petroleum prices,the people of Nigeria are on a long thing may God help us

/
Low interest rate spurs growth. But the voodoo economy they are running in Nigeria makes it difficult to balance interest rate and inflation. As long as Nigerians depends on importation of every basic thing, the economy will continue to be in tatters.

Reduce interest rate, provide easy access to funding, provide steady electricity, fix the major roads, curb multiple local taxation (State and City). How difficult is it to manage Nigeria? All these Vision20XX, Tradermoni and other bullshit are from lack of vision. Someone built Dubai, China, Singapore in less than 20 years.

/

These people want Nigerians to eat from dustbins. Dem lie!

Zimzy:
Lending or savings?

LENDING BRO

HORLADY:
Before making any comment, it will be nice to know the relationship between Interest Rate, Inflation Rate, Exchange Rate

Inflation rate is the general rise in prices of goods and services. One of the major driver is surplus money or easy access to money, which increases demands for these goods and services thereby increasing their pricing aka inflation.

Though increased inflation is bad, but one good aspect of it is, in a good economy; it increase labor participation in that, more people would be attracted by the increased prices to be entrepreneurs and start providing goods & services.

To curb inflation through cutting access to easy money, Central Banks usually increase interest rates, the goal is this would discourage borrowing and help in reducing easy money in the economy. The drawback here is, in a corrupt economy where trillions are stashed away by individuals outside the Central Bank Control, increase interest rate would attract more quack lenders into the economy who want to make quick returns by borrowing money at attractive rates to desperate individuals & businesses in the economy, therefore sometimes the intended benefits of increased rates are muted because of the inflow of easy money from outside the Central Bank system.

Increased interest rate would directly increase the foreign exchange rate of that currency against other currencies thereby reducing the exchange value of that currency. The reason being that money investors would like to keep and store overnight the currency with increased interest because they get paid higher overnight interest against the pair with the lower interest rate.

Because more people are now attracted to the currency with the higher interest rate, demand for that currency increases as supply reduces aka no one wants to part with them easily unless you pay them more for it, this therefore increases the power of this currency against its foreign counterparts.

If interest rates are increased, it also negatively affects exports out of that economy as foreigners would now have to pay more to get that currency in other to pay local producers in that economy. This may discourage foreign investments and exports as exporters would start shopping around other countries to see where they can get more value for their money.

It is the responsibility of the Central banks to monitor these interwoven dynamics and maintain a balance otherwise they can drive the economy into the ground if they get it wrong or react too quickly or too late.

kingamaa:
Confused people making life unbearable for the masses with their terrible policies.

There is nothing good in austerity.

Na food we need

Let the masses breathe. Nigerian lives matter.

Na policies we go chop. Policies, policies every day. Who policy help

Policies that are nothing but gambles oo.

This was emefiele job

This Tinubu government is a plague on Nigerians

Winning123:
Grow up and behave like an adult.

Ok you now want him to grow up buh when we warned you people u gave us hell on earth kinda insult. He won't grow up cos this is the standard Nigeria will operate hence forth

Templarlandy no see money buy data to come online and dedicate song to his political employer.

lomprico:
Ayam not undastanding !

Izit dat money deposited accumulates 18.75% interest rate or I dunno

Nope.

It means if you approach any Bank to borrow, the "Rent" for such money to you is 18.75% but if you have Deposits with them (Your Savings Accounts and many hybrids of it) you get a miserly 3%-4% (Depending on Banks)

But if you have big Funds 5m+, you can negotiate a Higher Interest with your Banks for a fixed number of days.

This is too much I swear

GRACEGLORY:
What!


How do you intend to cool the economy. Now it becomes more expensive to borrow money, consumers will definitely refrain from making purchases and spending reduces. Yet fuel price is alarming.

This rate hike won't bring down pump price, will it?

It won't..
Oil marketers can't take any compromise by reducing the pump price cos of the lending rate

Many people do not know that with the increase in MPR by CBN, commercial banks will now charge higher interest rates for loans.

What is happening with Tinubu economic policies for God sake.

every thing just dey rise for tinubu

lomprico:
Ayam not undastanding !

Izit dat money deposited accumulates 18.75% interest rate or I dunno

Nah, money borrowed from the bank accumulates an exorbitant 18.75 interest rate.. So, if you borrow 100k for example, you're going to pay 18,750 as interest.

Emefiele's portrait is still there.

Interest rate is used to control inflation all over the world but it doesn't work in Nigeria. CBN needs to re-strategize with another monetary policy. The rich hardly save money in naira these days.

Shege banza fully loaded

what impact will this have on our naira money in the bank. Economists in the house please help out.

Alhamdulilahi Robil Alamin I am a Muslim I don't collect interest loans.

Jaiz, Taj, Lotus banks and Islamic cooperatives with Free Interest loans.

Let the masses breathe well.

Interest is Haram.

GRACEGLORY:
What!


How do you intend to cool the economy. Now it becomes more expensive to borrow money, consumers will definitely refrain from making purchases and spending reduces. Yet fuel price is alarming.

This rate hike won't bring down pump price, will it?

Hike in interest rate is a 2-edged sword. You are focused on one part.

CBN is currently using it to control inflation. Trying to mop up excess liquidity from the economy.

FG is not involved in pump price again. The market is deregulated and market forces are determining the price.