Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,205,003 members, 7,990,769 topics. Date: Friday, 01 November 2024 at 12:19 AM |
Nairaland Forum / Nairaland / General / Politics / CBN Raises Interest Rate (MPR) To 22.75% (18123 Views)
CBN Raises Customs FX Duty Rate For Cargo Clearance By 14% / Again, CBN Raises Import Duty Rate By Another 4.4% In 24 Hours / Buhari Allocates Houses To 22 Members Of Super Eagles 1994 Squad (2) (3) (4)
(1) (2) (3) (4) (5) (Reply) (Go Down)
Re: CBN Raises Interest Rate (MPR) To 22.75% by Igahbarr: 4:51pm On Feb 27 |
All is just grammar. I doubt if anything will come out of it. |
Re: CBN Raises Interest Rate (MPR) To 22.75% by theamazonguru(m): 4:52pm On Feb 27 |
Goodlady: Read the post by Delarue. 2 posts above yours. He gave a very detailed explanation. |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Acidosis(m): 4:53pm On Feb 27 |
Theoretically, higher interest rates typically lead to lower inflation rates. This is what lecturers teach. However, this relationship is not straightforward, especially in a developing country like Nigeria. This is not the first time the CBN is hiking interest rates. Since May 2022, the CBN has continued to increase interest rate and not even once, has the inflation rate responded correctly. Facts don't lie. The idea of adopting all sorts of economic jargons from the West has done more damage here. We need to find what works for us. Abroad, the entire economy operates on credit. People buy the most basic things like phone with bank credit. Over here, how many Nigerians rely on bank loan? How many? They have mortgage, here we have ajo or buying Naira with Naira (POS) and all sorts of ideas that are unconventional to classical economists. We need to find what works for us. At best, hiking interest rates might make a few conservative investors romance a few Naira investments like FG bonds or TBills for a while...but no aggressive investor will come close to the Naira just yet. 3 Likes |
Re: CBN Raises Interest Rate (MPR) To 22.75% by alezzy13: 5:01pm On Feb 27 |
DeLaRue: Excellent, unbiased analysis 👍 1 Like |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Saintinoo(m): 5:01pm On Feb 27 |
Omooba77: Increasing the MPR mean that banks will charge higher interest on borrowing, this will discourage investors from approaching the banks for loan. I hate to criticize this people but I just hope this policy don't destroy what is left of the economy. |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Saintinoo(m): 5:06pm On Feb 27 |
Bevista: There is nothing to applaud about this policy, I honestly hate to criticize this people, but, the this particular policy has so many negative effects and when making an economic policy, care must be taken about it negative effects. The banks will increase it rates for borrowing, and many investors cannot approach banks for loans. I know CBN is trying to reduce money in circulation, but when this affects production, we are adding more bigger problems to the economy. 1 Like |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Anguldi(m): 5:07pm On Feb 27 |
DeLaRue:Economic theory are guess work. Can you explain the subsidy removal and naira floating that turned out to be disaster |
Re: CBN Raises Interest Rate (MPR) To 22.75% by a4cube: 5:08pm On Feb 27 |
Crvrider:But their is no money in seculation as of now. Nigeria is not a credit society, we buy things outright. Its just a little percent have mortgage or credit card in Nigeria so I don't see how this increase will help the economy. Our economy is 80% informal. 1 Like |
Re: CBN Raises Interest Rate (MPR) To 22.75% by yemmit90: 5:09pm On Feb 27 |
Seun: This will do nothing in reducing inflation, infact it will even add more pain to manufacturers as commercial banks too will increase interests rate on loans. The real causes of inflation has been clearly highlighted in the last paragraph of the main article. Rising cost of energy, high fiscal deficits and inflation. 1 Like |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Saintinoo(m): 5:10pm On Feb 27 |
Victory662: The policy is not for naira appreciation but to fight inflation. The MPR is the rate at which CBN borrows money to commercial banks, and it will affect the way and rate banks will lend money to investors, now, technically it mean that interest on loan for businesses will be high and will discourage investors from borrowing, off course we all know what will happen, production will reduce and inflation continue. 2 Likes |
Re: CBN Raises Interest Rate (MPR) To 22.75% by IamANigerianMan: 5:11pm On Feb 27 |
CodeTemplar: My brother i am crying here, a country where unemployment is high how can you increase MPR , this man is useless... we are talking of single digit this idiot is increasing it |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Saintinoo(m): 5:12pm On Feb 27 |
DevilsEqual: The past ones they made, we criticized it and were later vindicated. I am not a yes man, I criticize a bad policy. 1 Like |
Re: CBN Raises Interest Rate (MPR) To 22.75% by a4cube: 5:12pm On Feb 27 |
Saintinoo:When the bank charge higher interest, it discourages would be borrowers especially in this our present economy that no body know where its heading to. |
Re: CBN Raises Interest Rate (MPR) To 22.75% by RepoMan007: 5:13pm On Feb 27 |
Seun:fantastically flawed move. I see your handiwork o. Mr twin brother to BOT. |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Saintinoo(m): 5:14pm On Feb 27 |
Bevista: It has nothing to do with the rate of inflation, there are inflation which are over 60 percent. This is just a monetary tool to check inflation, but while doing this, you are destroying other side of the economy. |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Saintinoo(m): 5:17pm On Feb 27 |
teadrake: You don't even know what this policy mean or how it will help the economy, even if it will, but you are already supporting it. |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Yankee101: 5:19pm On Feb 27 |
This is clearly an IMF implementation strategy Punish the people and squeeze them dry I pity Tinubu, his name is already added to one of the worst presidents after just 8months |
Re: CBN Raises Interest Rate (MPR) To 22.75% by IamANigerianMan: 5:19pm On Feb 27 |
jmoore:my bother God bless you... politicians stores money in the houses, how can this be tackle increase MPR |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Acidosis(m): 5:20pm On Feb 27 |
Saintinoo: There are over 300,000 cooperative societies in Nigeria (around the largest in the world). The UK has only 7,000. These institutions have more than 30 million members in Nigeria. SMEs contribute 48% to Nigeria's GDP. Over 70% of business owners in Nigeria would rather depend on loans from cooperative societies than bank loan. These are the people controlling credits in Nigeria. The above are fundamental datasets that are peculiar to the Nigerian economy. We need people to hack our peculiarities. Enough of using economic jargons from the West. Our lives and economic decisions shouldn't be solely based around the banking sector. 2 Likes |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Saintinoo(m): 5:22pm On Feb 27 |
a4cube: In the long run, this policy will further destroy the economy, as it is an anti investment policy. Imagine that we need to produce more goods but investors can only borrow to do that, they will certainly be discouraged by the high interest rate. 2 Likes |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Saintinoo(m): 5:27pm On Feb 27 |
Acidosis: How many cooperatives does Dangote and BUA belong to, or why didn't Dangote approach one co operative to collect loan for his refinery. When economic decisions are made, we criticize without being bias. How many Nigerians are in the so called co operative, and how much loan can they give out? You think we are talking about loan to start a zobo production unit or sell akara here? 4 Likes |
Re: CBN Raises Interest Rate (MPR) To 22.75% by IamANigerianMan: 5:28pm On Feb 27 |
Newton1045: Be deceiving yourself politicians and the people stealing money are not saving it in the bank |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Paramount01(m): 5:29pm On Feb 27 |
grandstar: Pls explain to me, how will it slow down inflation, I don't know that is why i ask pls |
Re: CBN Raises Interest Rate (MPR) To 22.75% by BHG1(m): 5:31pm On Feb 27 |
Naira Exchange Rate: CBN Starts Dollar Sales at N1,301 per USD https://www.bhginfodesks.com/2024/02/naira-exchange-rate-cbn-starts-dollar.html IamANigerianMan: |
Re: CBN Raises Interest Rate (MPR) To 22.75% by ppogba: 5:32pm On Feb 27 |
Gbogbowa: Emefiele' s Naira redesign was not meant to mop up money from the economy. Get your facts right. 2 Likes |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Paramount01(m): 5:33pm On Feb 27 |
DevilsEqual: Abeg Educate me on this policy |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Paramount01(m): 5:36pm On Feb 27 |
DeLaRue: You are right, but in your own understand did you think this present CBN is good? |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Akinomoakin021: 5:36pm On Feb 27 |
nairalanda1: No, It’’s because GEJ was not so irresponsible to print 23trillion naira unearned money. The price of oil has been rising for close to 3 years now almost the same price as the GEJ era. The 120 dollars price of oil much shouted about was short-lived |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Acidosis(m): 5:36pm On Feb 27 |
Saintinoo: That zobo production business and the likes (i.e.,MSMEs) contribute over 48% of your country's GDP, and over 90% of the total employment in Nigeria. The highest in the universe or let me say the planet earth. Meaning that, if these MSMEs shut down today, you and everyone in your state will most likely be jobless forever. I understand that many of you don't like data, but I'll try to answer your questions again. 30 million Nigerians belong to at least one cooperative society. Cooperative societies in Nigeria are over 300,000 as opposed to just 7k in the UK. Your parents most likely used loans gotten from one cooperative society to build their first home, get their first car. They probably got cooperative loan at some point to pay your school fees, but no, you want to build your economy around bank datasets because you're in the UK, where people build/buy homes via mortgage? Cooperatives in Nigeria contribute 1.2 trillion yearly to your GDP. But you want to work with something you read from a book written by a UK based professor? Probably someone that has never withdrawn money from a POS vendor? Ahaha 😄 When your leaders are ready, they'll consult the right people. Make I rest. 5 Likes 1 Share |
Re: CBN Raises Interest Rate (MPR) To 22.75% by Akabuking: 5:43pm On Feb 27 |
DevilsEqual:sense you no get |
Re: CBN Raises Interest Rate (MPR) To 22.75% by nairalanda1(m): 5:43pm On Feb 27 |
Akinomoakin021: Yeah and you should also know that between 2014 and 2021,oyel was so low that we took loans and more loans. So when oil shot up in 2021, the money we earned went to pay those loans. And part of the loans we took then we're from CBN who printed money for the loans. I am not attacking your hero gej. I am pointing out why we have a vulnerable economy. And why you should never put your eocnomy on oyel. We were.here before, in 1972-83 when oil prices were so high, one naira was really one dollar. Then in 1982 oil crashed. By 1993 one dollar was 20 naira. By 2001, it was 97 naira. Nigeria should be an exporter of manufacturing goods and services, then we can have our currency better than gej and even better than 1978. |
Hahaha! See What A Colonial Oyibo Writer Said About ''Eboes'' (Igbo) / Sule Lamido Mocks Buhari’s War On Corruption / Nigerians Eat Expired Rice Meant For Animals ― Lai Mohammed
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 66 |