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Nairaland Forum / Nairaland / General / Business / CBN Raises Interest Rate To 15.5% To Curb Rising Inflation (18092 Views)
CBN Raises Interest Rate To 18.75% / Bank Of America Urges Nigeria To Hike Interest Rate To 25.5% To Curb Inflation / CBN Raises Interest Rate To 14% (2) (3) (4)
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Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by CheapHomes1: 3:32pm On Sep 27, 2022 |
LagbajaTheBEREAN: Help me ask. They are increasing taxes which is affecting prices and they think increasing interests rates will bring down prices 4 Likes 3 Shares |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Carlyboi(m): 3:32pm On Sep 27, 2022 |
Another useless and ineffective policy to arrest naira’s free fall!Tueh! |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Ex0rrcist: 3:32pm On Sep 27, 2022 |
Alexas58:As long as he's still using that stupid exchange rate, this move is likely not going to work. |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by stepaside2: 3:32pm On Sep 27, 2022 |
I don't believe raising interest rates by CBN will curb inflation. Emefiele should deal with multiple forex exchange rate regimes and curb massive roundtripping. That is the main problem. On the fiscal side, solve crude theft and significantly raise oil revenue then watch the Naira stabilise and cost of living start to reduce. 3 Likes |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by New007: 3:33pm On Sep 27, 2022 |
clockwisereport:Don't mind that one. He also doesn't know. 1 Like |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by DeOTR: 3:33pm On Sep 27, 2022 |
Nigerian economy defies every economic theory. Inflation in face of widespread poverty and hunger? 5 Likes 2 Shares |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by CheapHomes1: 3:33pm On Sep 27, 2022 |
Alexas58: Pls explain it so we can understand 1 Like 1 Share |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Tgb1: 3:34pm On Sep 27, 2022 |
Clueless government clueless governor Worse cbn governor ever shattering the economy piece by piece |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by OfficialP: 3:35pm On Sep 27, 2022 |
The impact will be shortlived |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Kaa4(m): 3:36pm On Sep 27, 2022 |
Alexas58:It definitely will not raise the value of the Naira. The Naira's case is matter of DD and SS and lack of confidence in the economy. The government has to generate the confidence in the economy before capital flight can stop. Higher DD than SS will create scarcity anyday. Irresponsible lot! CBN inclusive of the government. 2 Likes |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Tonytonex(m): 3:36pm On Sep 27, 2022 |
Alexas58:can you please explain. Will it affect those saving positively? |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Tonytonex(m): 3:37pm On Sep 27, 2022 |
Alexas58:can you please explain. Will it affect those saving, positively? |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by JuanDeDios: 3:37pm On Sep 27, 2022 |
Alexas58:El oh el. As if this is a proper economy in which commercial banks and the real sector are joined at the hips and interest rates matter. There are a few things the CBN can do to help our present situation, but raising interest rates isn't one of them. |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Vilgax: 3:38pm On Sep 27, 2022 |
clockwisereport: when a central bank raise interest rate. your normal bank will also respond by raising their own interest rate. with higher interest rate, people will tend to spend less and demand for goods and services will also drop, which will cause inflation to fall. When demand is low, most companies won't raise their prices in order to stay competitive. since prices of goods and services aren't increasing that fast, you've managed to reduce inflation. this is how CBN raising interest rates is meant to curb inflation. but na Naija we dey, our own economics dey always different so make we dey see. |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by IamANigerianMan: 3:39pm On Sep 27, 2022 |
SIMONEKPA7:Big one, how |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Kaa4(m): 3:40pm On Sep 27, 2022 |
Tonytonex:If the interest rates cascade down and banks pay appreciable amount of interest on the savings, it might help the Naira to reduce outflow in dollars. People are saving their wealth in other currencies and the dollar is the gateway. 2 Likes |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by t2luv1: 3:41pm On Sep 27, 2022 |
SIMONEKPA7: I have been saying this since the day he was appointed. Case in point before he stopped supplying forex to the bureau de exchange Naira black market rate was at 495 while the official exchange window was at 421 after he stopped the bureau de exchange supply of Forex, the Naira black market has risen to 705 while the official exchange window has risen to 431. The man created this artificial inflation and to combat this what has he proposed an increase in interest rate. The man is clueless how he managed to be CBN head is beyond comprehension. Question how many people are impacted by the interest rate in Nigeria as compared to the Naira exchange rate? 5 Likes |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by chinchum(m): 3:41pm On Sep 27, 2022 |
2022 Inflation is a global phenomenon. Canada's inflation rate got to the highest in almost 40 years, likewise U.S and U.k The Central banks are combating inflation with increased interest rate achieving little success. No thanks to the Russia vs Ukraine war. 1 Like |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Babachukwu: 3:41pm On Sep 27, 2022 |
Confused government. I don’t see Nairalanders shouting sai Baba again |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by frowland(m): 3:42pm On Sep 27, 2022 |
LagbajaTheBEREAN: Yes it will reflect on everything including government bonds, Savings and even debts. |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by otomatic(m): 3:42pm On Sep 27, 2022 |
LagbajaTheBEREAN: Yes. Your savings accounts earn interest at 30% of MPR. However, borrowers will also pay more interest. Fixed income investments will earn higher interests. But equity investors will experience a bearish trend. |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by JuanDeDios: 3:42pm On Sep 27, 2022 |
SIMONEKPA7:Where does one even start with that man? Buhari is too clueless to see the damage the man has done, so jankara market continues. |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by nedu666: 3:43pm On Sep 27, 2022 |
Buhari and emefiele caused the excess liquidity by printing 19.8 trillion naira to support govt deficit budget. Now he is raising interest rates to check excess liquidity but at the same time will print trillions of naira to support govt 11trillion 2022/ 2023 budget deficit. Take note industrial output fell by 34% and imports in dollar term fell by 39% i.e less goods being chased by trillions of naira printed equals more inflation. 2 Likes |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Dominic247: 3:43pm On Sep 27, 2022 |
Alexas58:�� honestly most won't understand... Dollar is too strong now, wen you look at other EUR and GBP currencies you will appreciate our naira. I still remember wat Bank of Japan did last Thursday it as not funny |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by ugonology(m): 3:43pm On Sep 27, 2022 |
Funny how they think mopping up liquidity will reduce inflation in a non-producing and import dependent economy. This will only strangulate the few non-bouyant indigenous companies left, it will simply increase the cost of production, trigger mass retrenchment and downsizing of workers and workforce. These companies are usually always indebted to banks, an increase in interest rate heavily affects the cost of production, manufacturing and doing business in general. 5 Likes |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by gambojimeta: 3:43pm On Sep 27, 2022 |
Tonytonex:Savings and Lending interest will go up. Interest rate on lending is usually higher than savings. That means you earn more on your savings and also pay even much more on your borrowing. |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Nobody: 3:44pm On Sep 27, 2022 |
SIMONEKPA7: |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by DeOTR: 3:44pm On Sep 27, 2022 |
Alexas58:How does increasing the interest rate stop importation of refined petroleum products? The last time I checked, that's the major reason for free fall of Naira. Increasing the interest rate will only increase woes of the common man. |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Shadysen: 3:45pm On Sep 27, 2022 |
i dont understand one single thing they are talking about, make una help me out abeg. |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Dominic247: 3:45pm On Sep 27, 2022 |
Aareakinwunmi:wait till November wen BOE meet again |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by tope777(m): 3:46pm On Sep 27, 2022 |
Sai Obi.. |
Re: CBN Raises Interest Rate To 15.5% To Curb Rising Inflation by Tonytonex(m): 3:47pm On Sep 27, 2022 |
gambojimeta:ok. Thanks. Savings interest rates don't always work. It's only when you want to take a loan that they implement it |
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