₦airaland Forum

CBN Cuts Interest Rate To 23% As Inflation Drops, Naira Stabilises, Reserves Rise

The CBN has cut Nigeria’s benchmark interest rate from 26.5% to 23%.

That is quite a big move.

But the more interesting part is the condition of the economy around the decision.

Inflation has dropped to 15.39%.

The naira has also been a lot more stable than it was before, and Nigeria’s external reserves have continued to strengthen.

The economy itself is also growing. The latest official GDP report shows that growth has improved from where it was earlier in the year.

So when you put all these things together, the rate cut begins to make more sense.

For the past couple of years, the CBN has been fighting inflation, trying to stabilise the foreign exchange market and rebuild confidence in the economy.

Now, with inflation easing, the naira more settled and reserves stronger, the Bank appears to have more room to start reducing the pressure that very high interest rates put on businesses and the wider economy.

Of course, nobody should expect bank loans to suddenly become cheap because MPR is now 23%.

That is not how it works.

But if this direction continues, borrowing costs should gradually begin to ease, and that could be good news for businesses looking to expand, manufacturers trying to invest and the economy generally.

The way I see it, the bigger story is that the conversation may slowly be changing.

For a long time, it was almost entirely about stabilising the economy.

Now we may be getting to the point where the CBN can start thinking more seriously about giving growth some breathing space.

Inflation is lower.

The naira is more stable.

Reserves are stronger.

The economy is growing.

And now interest rates are coming down.

That combination is definitely worth paying attention to.

Source

This is very good. DMB's should follow accordingly.

Make una go front with una wash and wear tactics

Economy will be better when the basis of our economy is manufactured goods and services.

It's dropping on paper but should be seen and felt in reality.

Dropping from where exactly? From the sky?
These people are just deceiving us with Excel sheets and PowerPoint presentation graphics.
Let’s look at reality: fuel is still N1,300+ in Lagos, transport fares are cutting people's necks, and food prices in the market are definitely not reading '15% inflation.
If MPR is 23%, commercial banks will still lend to businesses at 30% to 35%.
They should reduce the cost of living on the streets, not just on paper.

Nonsense..where did the inflation drop? When did naira stabilise.. Tinubu media with their lies and propaganda.

Naira stabilizes for where? @how much to a $ today? Where petrol is selling @1400+? A double digit galloping inflation? How has all these done this nation good? This failed government can only continue to deceive itself

Great take.
Truth is I know some people will read this and say lies, propaganda I was always like that but I discovered my thoughts stemmed from ignorance. Truth is you just have to pay attention to this things and understand how they work. Understand how economics work. The rate was held even when interest rate was affecting businesses but because inflation was high. I know you will say things are still high but guess what guys bag of rice hasn’t skyrocketed to 100k still on the same mark for a while now guys things could have worse so even this too , them cutting rate is proof that we’ve left injury season so let’s understand nothing kills is more as a people than ignorance

Fuel being 50% of our daily lief's work at 1450, how the economy take stabilize?

Just sell less than 1k then we can clap for you

Tinubu/APC data boys at work...
Inflation is still high by international standards, food inflation was 19.57% in August, and the CBN is still maintaining a very restrictive monetary framework, including a 45% CRR for deposit money banks.

AND SOME PEOPLE ON HERE WILL BE SPEWING THRASH AGAINST THE PRESIDENT...




WHETHER YOU LIKE IT OR NOT, PBAT IS YOUR NATIONAL FATHER!


ANY ABUSE ON HIM IS AN ABUSE ON YOURSELF!



KEEP UP THE GOOD WORK PBAT ỌMỌ OLODO IDE 💪 💪 💪


TINUBU WILL WIN BEFORE 2PM COME JANUARY 15TH 2027!

LIKE FOR ASIWAJU!

SHARE FOR THE MAN WHO RULE HIS STATE FOR 8 YRS AND YET LIVES IN LAGOS!

Apc can only deceive their zo nbeeeeee followers with propaganda and lies.

Bad news for the haters of Nigeria...


I will see a better Nigeria in my lifetime!!!

They claim economy is growing because they have more reserves

They claim inflation has fallen to 15% but then when you go outside all you see is poverty

Yinmu...Audio drops

Reforms should be felt not announced

After 2027 election dem go raise am x10

No Sir, thank u!
It's APC vs Nigerians in 2027
✌️🤣🤣

Nice one
All this people na skepticism go kill una.
Now businesses this is your cue to grow this economy

The same statistics Tinibu said Obi China as he insulted and cajoled Peter Obi's name to be is forcing on Nigerians to chop is even what he is forcing on his data boys to vomit this time to the same Nigerians ....

Data boys, our President made it sure that we won't be discussing statistics but reality like detailed actions .....

But here we are, firth and back process with all things fallen like wall of Jericho...

motymop:
They claim economy is growing because they have more reserves

They claim inflation has fallen to 15% but then when you go outside all you see is poverty

You would also agree even they have been saying what’s next is to translate reform to the everyday people.
Fiscal and monetary policy must align. Una problem be say una no understand.

ogugwa1992:
CBN Cuts Interest Rate To 23% As Inflation Drops, Naira Stabilises, Reserves Rise

Before we get carried away by this news, should we find out what the rate was when PDP deregulation and privatisation policy experts were in charge of our country, giving us cheap petrol, widespread prosperity as well as less debt & tax burden?

Nemere2020:
The Minister of Finance and Coordinating Minister of the Economy Chief Olawale Edun has said the last time Nigeria’s economy looked stable was about a decade ago.

He made this statement during his maiden press conference as Minister of Finance where he outlined President Bola Tinubu’s vision, agenda and strategy for the economy.

He said, “I think as we all know, we are not where we should be. The economy is barely growing above the rate of population growth.

“But it was not always so, and I think in trying to look at the way forward, if we now have a situation of slow growth, double-digit inflation, weak/depreciating exchange rate, as well as security concerns that are resulting in an economy that is not growing and not taking Nigerians out of poverty.

“If we think back to the last time when the economy was stable- when it was growing, when inflation was low, and the interest rate was affordable, that period was about a decade ago. Growth was about 6% in 2013 and 2014.”

https://nairametrics.com/2023/09/01/the-last-time-nigerias-economy-was-stable-was-about-a-decade-ago-wale-edun/

OmawumiAmelia:
Great take.
Truth is I know some people will read this and say lies, propaganda I was always like that but I discovered my thoughts stemmed from ignorance. Truth is you just have to pay attention to this things and understand how they work. Understand how economics work. The rate was held even when interest rate was affecting businesses but because inflation was high. I know you will say things are still high but guess what guys bag of rice hasn’t skyrocketed to 100k still on the same mark for a while now guys things could have worse so even this too , them cutting rate is proof that we’ve left injury season so let’s understand nothing kills is more as a people than ignorance

Keep standing on ur mandate and stop whyning us abeg!
✌️😎

Rubbish! They can keep deceiving themselves. This government must be kicked out next year

To them TATA boys, prices are crashing

Chidibe212:
Fuel being 50% of our daily lief's work at 1450, how the economy take stabilize?

Just sell less than 1k then we can clap for you

When last did exchange rate climb to 1600, 1700 we were coming from 1900, 2k

The problem is street are not feeling it because subsidy is gone, which needed to go. The truth is we were in an icu as a country, if subsidy didn’t go things would be worse, how subsidy left could it have been better yes but the people on monetary policy end have they been fighting inflation tooth and nails yes they have

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Omo the kind of high interest rate Nigeria sustains is the type used where nothing worthwhile is made.

I can still remember when china finally stopped their -5% interest rates for manufacturing after several years.

This means some banks pay manufacturers 5% interest on loans once some conditions are met. This means if a manufacturer takes 100k, he pays back 95k as long as his business met certain targets.

Serious countries have interest rates hovering in the single digits.

In the shithole it goes as much as over 30%.

China has started retailing in this country. Tax free import to them is part of the deals we signed to obtain loan from them. So how can a local manufacturer even beat them in price with double digit interest rates?

Or is everything meant only to pepper Igbo?
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IAM4BAT4plus4:
AND SOME PEOPLE ON HERE WILL BE SPEWING THRASH AGAINST THE PRESIDENT...
WHETHER YOU LIKE IT OR NOT, PBAT IS YOUR NATIONAL FATHER!
ANY ABUSE ON HIM IS AN ABUSE ON YOURSELF!
KEEP UP THE GOOD WORK PBAT ỌMỌ OLODO IDE 💪 💪 💪
TINUBU WILL WIN BEFORE 2PM COME JANUARY 15TH 2027!
LIKE FOR ASIWAJU!
SHARE FOR THE MAN WHO RULE HIS STATE FOR 8 YRS AND YET LIVES IN LAGOS!

What part of Tinubu's voodoo economics looks like good work to you sir

anonimi:
March 8, 2013
Nigeria operating voodoo economy – Tinubu

FORMER Lagos State Governor, Asiwaju Bola Ahmed Tinubu, yesterday, dissected Nigeria’s economy and declared that the country was operating a voodoo economic policy that is pauperising the citizenry and urged urgent economic surgery to save the polity.

For instance, Tinubu wondered why the Federal Government is maintaining a foreign reserve of $46 billion with one or two per cent interest and shouldering a load of $42 billion domestic debt, which it services with 16 per cent interest.

“This is voodoo economy,” he said, adding, “they are operating it because they don’t know what to do. It is choking the private sector.

“We must in this country do away with the idea of ‘it is better save the money and spend the people.’ Rather I will say we should adopt the policy of ‘it is better to save the people and spend the fund.’

https://www.vanguardngr.com/2013/03/nigeria-operating-voodoo-economy-tinubu/amp/

CorrectionFLuid:
Omo the kind of high interest rate Nigeria sustains is the type used where nothing worthwhile is made.

This is the type of interest rate that crushes production locally and favours cash & carry traders & importers like Peter Obi, twin brother to balablu bulaba propaganda politician Tinubu.

Imagine, how Obi also supports continuing subsidy on imported fuel from Tinubu's Malta blending plants to kill Dangote refinery.

bennybuhari:
“’I cannot take anything back about Obi. I said Obi said he wants to move Nigeria back from consumption to production and I said that is not true. He cannot do it because his own business survives on consumption. Is that a lie? He has been an importer and I said he deals with cash and carry economics; container economics, imports”.

“All the goods that can be produced in Nigeria, Obi imports them in his supermarkets. That is consumption economics. That kind of person cannot tell you that he is moving you from consumption to production. He will then be committing self-economic suicide and Obi will not do that to himself”.

“So, Obi is deceiving everybody and I can’t take that back because that is true.

https://independent.ng/peter-obi-deceiving-everybody-i-wont-retract-my-statement-about-him-dele-alake/

I like as una dey fight blindly. Anybody wey talk truth you automatically think is driving an agenda . Open your mind as a people.
Weldone Cardi boy. Nigeria will be great!

anonimi:
This is the type of interest rate that crushes production locally and favours cash & carry traders & importers like Peter Obi, twin brother to balablu bulaba propaganda politician Tinubu.

Imagine, how Obi also supports continuing subsidy on imported fuel from Tinubu's Malta blending plants to kill Dangote refinery.

You all are against it because you are not seeking knowledge. Seek knowledge! There’s no good president that understands econs that will go back and return subsidy. But you all know better bah? Carry on