₦airaland Forum

Samexdx:
Somebody should please explain to me(us) in laymans language

There's nothing like lay man language. All the jargons are economic terms. You can educate yourself using Google without necessarily being an economist. However, where debates arise more especially as each of tne terms affect macroeconomic variables, well grounded economists discussion will be better appreciated.

givan:
I'd call this stupid! The economy is down. Reduce your lending rate to enable business get access to capital and boost production.

If businesses boost production, more people would be employed and the economic cycle would grow.

Clueless cow government.

I call this smart by MPC members not beer parlour children of used clothes sellers.

The economy needs investible funds, INCREASE your interest rates to suck in dollars and pounds and yuan. Increasing interest rates also REDUCES inflation.
When you are properly capitalized from outside funding, start reducing lending rates so that local businesses can grow to meet up.

Clueless, uneducated wailer

The eurozone got out of recession by introducing negative interest rate regime; meaning a commercial bank pays the the Central bank interest for keeping money with it. This measure forces commercial banks to lend to the public.

Samexdx:
Somebody should please explain to me(us) in laymans language

Google it. There was a time when to learn new knowledge you had to visit a library and go through volumes of books. The Internet is here, use it.

walexy100:
The eurozone got out of recession by introducing negative interest rate regime; meaning a commercial bank pays the the Central bank interest for keeping money with it. This measure forces commercial banks to lend to the public.

Eurozone and the US had a different problem. They are post industrial economies. They were awash in savings but reduced investments. The stock markets were crashing and people were not putting money into investments. This is also why they are exporting Capital to emerging markets. Nigeria received $12.5bn last year into via portfolio investments. They bring in money and temporarily buy shares in Banking, Cement, Oil and Gas companies et.c

In Nigeria we are trying to do the opposite. Please study issues deeply and don't be shallow or glib. The CBN people taking the decisions are not fools, they also have the best external consultants working for them.

Only ixots think monetary policies are set by politicians like OBJ, GEJ or Buhari.

Nigga44:
14% in the news......24% at the banks.

Shithole republic.

Exactly... who is fooling who. Wanted to borrow money from a leading bank.. was told 23%

Ok

SternProphet:
Eurozone and the US had a different problem. They are post industrial economies. They were awash in savings but reduced investments. The stock markets were crashing and people were not putting money into investments. This is also why they are exporting Capital to emerging markets. Nigeria received $12.5bn last year into via portfolio investments. They bring in money and temporarily buy shares in Banking, Cement, Oil and Gas companies et.c

In Nigeria we are trying to do the opposite. Please study issues deeply and don't be shallow or glib. The CBN people taking the decisions are not fools, they also have the best external consultants working for them.

Only ixots think monetary policies are set by politicians like OBJ, GEJ or Buhari.

No wonder all the Mpc members were unanimous in their voting. Why have these high rates not feveloped the economy after many years. l

Central banking primarily targets Job creation and Inflation; the former first.

Anyway, my advice to to individuals with investible funds is buy FGN bonds and treasury bills and go to sleep. Why going for fixed deposit with low interest rate and bank collapse?

toro92:
Exactly... who is fooling who. Wanted to borrow money from a leading bank.. was told 23%

Don't invest in low margin businesses for now. Invest in agriculture, food, non-power dependent manufacturing (surprisingly many of them) and agric related logistics, IT.

AkpaMgbor:
This shows you how irredeemably greedy the entire system is..which country in this world can make progress with such an interest rate??

Turkey, South Afrika, Namibia is 2 percent
Saudi is 0% , Ghana 8% , America 8%