CBN RAISES INTEREST RATE TO 22.75%

[@AbdulwaheedOmobolaji]

This life is not balance ooo. Around 2017 Asiwaju Tinubu was calling out Emefiele the then CBN gov under fmr president Buhari for pegging interest rate at 14 percent that it will spoil the economy. Now hes the president but interest rate is now 22.75

[@TobsORE-D]

It makes absolutely zero sense to continue hiking rates to fight supply induced inflation - all this does is stifle the little investment that's already out there and make things more expensive for the few in Nigeria that tap into the credit markets, but in reality the only thing that will begin to reduce inflation in Nigeria is an increase in production and hence supply of all these commodities and a concurrent reduction in consumption of imported goods due to less need for them. Hiking rates as I said reduces investments by businesses etc which means less supply and in my opinion higher inflation. Its a vicious cycle with so many moving parts but it is very stupid IMO to act like we are a developed economy with high employment and the rest - those are the conditions where inflation is demand induced and monetary policy works to stop it. In our case we are using monetary policy to make inflation worse, we need to move focus away from the CBN and focus all strategy towards calming inflation through fiscal policy. May we find the wherewithal because this viscous cycle is very dangerous indeed

[@olabsy]

Even BOE, has kept interest rate the same for at least a year at 5.25%, with the hope that consumer actions will bring down inflation and this too hasn’t worked. 22.5% mercy Lord, how are people going to survive? . The middle class have almost been wiped out with people now sliding into 2 extreme side of the spectrum. Nothing seem to be working. Why can’t they just scale up infrastructure projects and beef up security for starters!!!!

[@ABCD1234-user-x3v]

Raising CRR to 45% is crazy. If the banks have to hold on to that much cash, they will increase fees to account for lost loan revenue (due to holding cash). People will further decide to avoid banks and their high fees making the issue of “cash outside the system” worse and reducing the effectiveness of further monetary policies.

[@christopheradodo4718]

The country economy is in a serious recession. Because of lack of sound economic and monetary management especially in the last eight years. Exacerbated due to the poor management of the petroleum subsidy removal. Also, the floating of the naira against other foreign currencies has led to the near collapse of the naira. And which led to the higher inflation rates in the country. The citizens are in a shock as their bank savings have been reduced to nothing because of the unofficial devaluation of the naira. Also, prices of food and commodities have increased astronomically thereby contributing to the rapid hardship in the country. Including construction sector where prices of cement and steel are increasing rapidly. In fact, the cost of living in Nigeria is in a free fall and it is difficult to predict when it will end. Compounding the problem is the endemic corruption in the country.

[@timipereallison2647]

No hope for Nigeria.