₦airaland Forum

LePrezident:
I totally agree with you. The current global economic strategy is to lower interest rate to stimulate investment and employment. African economic managers are just theoretical and highly risk averse. In my opinion, most economic managers act more like accountants than the economists they are supposed to be.

The time to lower interest rate has passed, if CBN try it now, the economy will implode with hyperinflation. With inflation rate at 18.3 percent on a yearly basis, the highest in over 11 years, I won't be surprised if CBN hike interest rate again at 20 percent inflation rate to curtail consumer prices.

hopilo:
Why? Interest rate should be lowered to encourage investment and end recession. Maintaining the stance of last quarter means depression is guaranteed.

You are talking about macro economics theorem but Nigerian system is based on physical observations. Because it is believed that if the demand for a commodity increases, it will have a possible increase in price effect. And if it lowers, price will reduce. But in Nigeria, any commodity that mistakingly goes up will surely not come down because our pricing mechanism is not functional just like in a saner cline. 2. small scale medium enterprises is highly operational in nigeria making pricing policy harder to be implemented. 3.If interest rate should be lowered to encourage investment, foreigners will troop in to invest because of the reduced interest rate and exchange rate advantage which is a sweet thing but they will be remitting so little to the federal govt and because nigeria is a country where the pricing policy is marred, they will increase the price of their commodity without considering going through the value added for production.

kcpumping:
please bankers in the house help me explain this...I collected bank loan at 25% interest rate when the bench mark was 12%. now it went up by 2 % my bank increased my interest rate to 31%.pls is this normal? is there anything I can do to reduce this outrageous interest rate?


Note: this is my salary acc and they have been deducting 2000 every month as an added collateral.

tnx for your quick advice

The MPR, CRR, cost incurred in deposit mobilisation and a mark-up (premium) determines a bank's interest rate on loans.

this Emiefele is a banker so it is expected. He is out to protect the banks. all over the world to stimuate the real sector interest rates are reduced to single digit. but in Nigeria i keep wondering what kind of crazy bald heads we have at the helm of affairs.

Truth234:
The time to lower interest rate has passed, if CBN try it now, the economy will implode with hyperinflation. With inflation rate at 18.3 percent on a yearly basis, the highest in over 11 years, I won't be surprised if CBN hike interest rate again at 20 percent inflation rate to curtail consumer prices.

Really?

1. When in your opinion was the right window to have lowered interest rates?

2. Do you endorse the current interest rate position of the CBN?

Emefelie is not bald, he just keep shaving his head

MrMcJay:
Bald men are known to be very wise people but this Emefiele has proven to be an exception to wisdom.

LePrezident:
Really?

1. When in your opinion was the right window to have lowered interest rates?

2. Do you endorse the current interest rate position of the CBN?

They should have lower it in July when inflation rate was 16% to enhance job creation and attack unemployment. But CBN increased interest rate by 200 basis points to 14% against general consensus to lure foreign investors in order to increase capital importation needed to bolster FX market liquidity. That was a big mistake, because it was a cost-pull inflation, and the anticipated increase in capital importation was below expectation as Brexit and global uncertainty continued to weigh on emerging market prospect---especially a commodity dependent economy like Nigeria.

So, even though current interest rate is high and hurting the masses. CBN can not lower it at 18.3 percent inflation rate and low fx liquidity. Hence, they are force to sustain it, while praying OPEC go through with November 30 production cut in Austral.

If you read some of my posts here https://www.nairaland.com/3249508/naira-sinks-378-dollar-analysts you will understand why I was against increasing rate then and why I knew it won't work. I forecast 20% inflation rate by December.

They should all be ashamed of themselves. They all lack foresight, non of them can think out side the box . Egg heads. THEY CANT SOLVE THE PROBLEM YET THEY SEAT TIGHT IN OFFICE, GOOD FOR NOTHING FINANCIAL POLICY MAKERS.

SweetLove0:
ok na.good one

Complimentary

PastorOla1:
They should all be ashamed of themselves. They all lack foresight, non of them can think out side the box . Egg heads. THEY CANT SOLVE THE PROBLEM YET THEY SEAT TIGHT IN OFFICE, GOOD FOR NOTHING FINANCIAL POLICY MAKERS.

That Is The Reason

N467 to one dullard. na wa o.

kcpumping:
please bankers in the house help me explain this...I collected bank loan at 25% interest rate when the bench mark was 12%. now it went up by 2 % my bank increased my interest rate to 31%.pls is this normal? is there anything I can do to reduce this outrageous interest rate?


Note: this is my salary acc and they have been deducting 2000 every month as an added collateral.

tnx for your quick advice

u can part liquidate ur loan depending on ur loan agreement form

peacekeeping:
u can part liquidate ur loan depending on ur loan agreement form

tnx boss...

Olodo governor!

hedonistic:
The problem is that Emefiele is forced to be a "Dundee' in order to retain his job. He has to take specific orders from cattle farmers in Daura with regard to monetary policy. Then again, he has zero integrity and he is a massive coward - otherwise he should have resigned and relocated abroad (to avoid witch hunting).

Nigeria's woes are just beginning. Zimbabwe and even Somalia are 'learners'. Many would still eat from dustbins. As long as the majority who are fools can't revolt against the bastards from Daura that are in power.

Anyone that still blames Jonathan or PDP for our ridiculously miserable situation now is a big fool. Our problems are Buhari policy-inflicted, NOT Jonathan inflicted.

At this point it is now difficult to believe that story of Emefiele being dictated to on every single thing he does... Regarding the issue of devaluation or not, oh yes he was influenced from above. But on all these other policies here and there, it is hard to believe he is being controlled, most of what we see these days are purely his ideas.

Chukzyfcb:
rubbish. go and tell Kemi adeosun to go and seek for dollars to give the manufacturers. I remember the world bank were offering loans at 0% but they needed some sort of policy from sovereign nations before handing out the dough. tell her to reduce tax rates and widen tax nets to catch more defaulting companies in her books. as far as inflation remains 18% and increasing. no portfolio investor will want to invest when his real return on investment is negative. this is the only thing left now to lure foreign portfolio investors. no be only loan be manufacturers problem

Rubbish? I perceive you are not into manufacturing and hence do not know the economics of trade that is responsible in a Nigerian setting. Please kindly go to this link for more information: http://www.dailytrust.com.ng/news/general/manufacturers-upset-as-cbn-retains-rate-at-14/172885.html

RABIUSHILE04:
What do you propose they do?

I suggest that they immediately lower the interest rates so that government can borrow at a lower rate and spend its way out of recession. Only government spending can bring about the needed bail out from recession. As for dollar scarcity, a sudden re-denomination of our a major fraction of the external reserves in the reminbi will send many into unexpected panic- accompanied with an agreement on technology transfer within an appropriate time frame is just enough to see many (bad) people crash to their early graves. I mean those dollar hoarders.

Ayoolla:
I suggest that they immediately lower the interest rates so that government can borrow at a lower rate and spend its way out of recession. Only government spending can bring about the needed bail out from recession. As for dollar scarcity, a sudden re-denomination of our a major fraction of the external reserves in the reminbi will send many into unexpected panic- accompanied with an agreement on technology transfer within an appropriate time frame is just enough to see many (bad) people crash to their early graves. I mean those dollar hoarders.

Good one, this is what is expect from you at first.

Also, u forget we were IMPORT dependent, and we just trying to diversify the economy, these things take time.

These hoarders know these things, that's why dey keep hoarding dollars. Maybe wen we r dependent on our resources, and export stuffs, produce majority of our wants, den these hoarders can JUMP OFF a cliff or somtyn!


My point is, we are getting there, tho we r tired of hearing this, LOL.

Good one again brother.