CBN interest rate

The expert advised that the apex bank should also consider the cost of borrowing in taking monetary policy decisions. “In the area of micro economy stability, ...

This will be more impactful on the economy,’’ he said. The MPC should look at several other factors like taxation. Almost all government agencies are collecting taxes. “Also, looking at the cost of production, we will begin to look at the power sector and high cost of energy. “In the area of micro economy stability, we need to begin to look at the cost of borrowing, if reduction in the cost of borrowing is going to help tackle inflation. “The challenge with Nigeria is not just that we are dealing with an inflation that has to do with single-digits, we are also dealing with an inflation that is driven by three major factors.

The Central Bank of Nigeria (CBN), on Tuesday, said it will slow the pace of its rate hikes as a new strategy to reduce negative interest...

The government needs to do what they can to bring it down.” “Nonetheless the rates are still elevated, which means that it is negative for the government.” “Growth will still be negative because the cost of credits is still high. He said: “I had expected MPC to maintain a hold position considering the significant drop in currency in circulation occasioned by the currency redesign policy and the fact inflation rate actually decelerated month on month between January and February 2023. “And in terms of fighting inflation, I have my doubts whether it would be able to fight it. It is neither going to influence inflation positively. The margin between policy rate and inflation remain wide, which is negative real rate. This is necessary in order to stimulate economic activities and create job opportunities.” “To this end, it pledges more tightening, albeit at a more moderate pace, in order to reduce negative real interest rates.” Nigeria’s inflation rate rose to 21.91 percent in February, 3.91 basis points higher than the benchmark interest rate. “This will probably continue if inflation stays high and till it sees effect on GDP. “In terms of reform, there are now firm expectations that we should see fuel subsidy reforms commencing imminently.

In a hawkish move, the Central Bank of Nigeria's Monetary Policy Committee has raised the Monetary Policy Rate to 18 per cent from 17.5 per cent last.

It is expected that increasing the interest rate should tame inflation if other variables are kept in check, as done in other climes. Raising MPR will not necessarily be the answer”, he said. “CBN will tell you that the action was taken to fight inflation, but Nigeria’s activities will tell you that things like this will not work.

The benchmark interest rate by 50 basis points to 18% from 17.5 per cent announced on Tuesday by the Central Bank of Nigeria (CBN) has been criticised.

The adverse impact of the recent cash scarcity on productive activities, as well as the conclusion of election season, should have provided justification for a hold position.” Members resolved by a majority vote to raise the money policy rate NPR by 50 basis points. Emefiele noted that the committee voted to keep the asymmetric corridor at +100 and -500 basis points around the MPR. It is when the banks receive money that they can create money to give as loans. He said, “The MPC committee voted to raise the MPR by 50 basis points to 18 per cent, retain asymmetric corridor at +100 and -500 basis points around the MPR. “All members voted to keep all other parameters constant.

On Tuesday, the Central Bank of Nigeria (CBN) raised the Monetary Policy Rate to 18 per cent, up from 17.5 per cent, a decision that surprised many. Since |

[Investigations4 months ago](https://www.ripplesnigeria.com/special-report-world-bank-road-projects-go-bad-in-enugu-as-state-govt-fails-to-fulfill-promise/) [Investigations4 months ago](https://www.ripplesnigeria.com/students-suffer-as-contractors-abandon-kano-school-projects-after-receiving-over-n70m/) This will lead to firms paying less tax, and as a result, reduce contribution to the economy or gross domestic product (GDP). [Investigations3 months ago](https://www.ripplesnigeria.com/investigation-in-cross-river-civil-servants-retire-into-poverty-as-govt-looks-away-squanders-funds-on-frivolities/) [Investigations2 months ago](https://www.ripplesnigeria.com/investigation-how-oyo-state-contractors-spent-n1-1bn-on-water-projects-but-communities-dont-have-a-drop/) Loosening in the view of the members (MPC) will gravely undermine the gains so far achieved,” Emefiele had stated. [Investigations2 months ago](https://www.ripplesnigeria.com/investigation-4-yrs-after-completion-kwara-phc-facility-inactive-rural-dwellers-in-pains/) Thus, if the CBN sets MPR at 18%, all commercial banks will lend 18% PLUS.” Thus if MPR is raised, banks will also raise their bank loan rates. Also, existing debtors will see the interest on their debt raise in line with the new rate. Since April 2022, the central bank has been raising the MPR, which serves as a benchmark for lending rates. [Business](https://www.ripplesnigeria.com/business/)