all over the world, when the economy is down, one of the best options is usually to cut interest rate, but in Nigeria, even with an economy in recession, the managers are still not reducing interest rate.?

how do we expect economy to grow in such dire situation?

Chukazu:
all over the world, when the economy is down, one of the best options is usually to cut interest rate, but in Nigeria, even with an economy in recession, the managers are still not reducing interest rate.?

how do we expect economy to grow in such dire situation?

The economy dwindled as a result of the fall in oil prices. As Nigeria is a mono-economy, it has thus affected us badly which prompted the CBN to introduce control on foreign exchange.

CBN intentionally hiked interest rates as an incentive to encourage foreign investors to return to the country so as to boost our foreign reserves which has reduced badly.

CBN is aware the economy is dwindling but their main priority at the moment is the boosting of our foreign reserves as we are at the risk of being stopped from trading amongst nations if our foreign reserves drop below a certain threshold.

After our reserves may have risen back to a certain level, they sure will reduce the interest rates back to low levels all in a bid to stimulate the economy ( I believe that will be announced at the next MPC meeting which will be held in October). So relax, they know the right thing to do but Nigeria is currently in a bad state that it will tale a while before we see the results.

Lastly, I subscribe to the idea of relieving the CBN governor of his job.

CuteTj:

The economy dwindled as a result of the fall in oil prices. As Nigeria is a mono-economy, it has thus affected us badly which prompted the CBN to introduce control on foreign exchange.

CBN intentionally hiked interest rates as an incentive to encourage foreign investors to return to the country so as to boost our foreign reserves which has reduced badly.

CBN is aware the economy is dwindling but their main priority at the moment is the boosting of our foreign reserves as we are at the risk of being stopped from trading amongst nations if our foreign reserves drop below a certain threshold.

After our reserves may have risen back to a certain level, they sure will reduce the interest rates back to low levels all in a bid to stimulate the economy ( I believe that will be announced at the next MPC meeting which will be held in October). So relax, they know the right thing to do but Nigeria is currently in a bad state that it will tale a while before we see the results.

Lastly, I subscribe to the idea of relieving the CBN governor of his job.

that is policy somersault. we can never attract foreign investment nor boost external reserve by hiking our interest rate. that will do more harm than good