National Economy
Sunday, July 13, 2025
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
Read News
National Economy
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
National Economy
No Result
View All Result
Home Business

Expert Advice CBN On Interest Rate Hike, Says Private Sector Investment Could Be Crowded Out

by Adejumoke Adeeso
1 year ago
in Business, Cover, Lead-In
Reading Time: 2 mins read
CBN

CBN

Share on FacebookShare on TwitterShare on Telegram

It is no longer news that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) is set to hold its third meeting of the year May 20 and May 21.

While a majority of the market watchers projected that the MPC would hike the lending rates to combat persistent inflation, a renowned economist, Lead Consultant on Private Sector Development to the ECOWAS Commission, Prof. Ken Ife, has advised the committee on the possible consequences that can play out if the lending rate of 24.75 per cent is not retained.

Disclosing this in an interview with the News Agency of Nigeria (NAN) in Abuja, he advised the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to retain the prevailing rates.

According to him, “In the prevailing circumstance, private sector investment could be crowded out because if banks are forced to borrow at a high level, their lending rates will also get higher.

You May Like

CBN Clarifies BVN Fee For Nigerians In Diaspora

World Bank Approves $65m Loan For Nigeria’s SPESSE Project

“They might want to increase the rates, the worst case scenario is for them to retain. This is because the policy is working to tighten the grip on inflation. It is actually yielding results.

“Even though, relative to last year, inflation is increasing, when you look at month on month inflation, all the five inflation indices are decreasing.

“Headline inflation, which is the composite price index, food basket index, core inflation, urban inflation, and rural inflation. They all went up in the last 12 months, but month on month, between March and April, they all started going down.” So, the aggressive tightening is working, but it needs more time for the growth to become significant and reflect on the next months.”

He noted that the MPR, being less than inflation, is a major challenge for investors.

He revealed that the seeming success of aggressive tightening in the last two meetings might propel the committee to further tighten the rates.

He said, “Inflation is 33.1 per cent while the lending rate is 24.75 per cent, this does not encourage investment.

”So, the MPR could continue to rise while inflation continues to decline until one gets higher than the other.

”It is advisable to retain the rates but I know that they are minded to increase it.”

Tags: CBNMPC meeting
ShareTweetShare
Previous Post

Again, TAJBank Wins Best Islamic Bank Award

Next Post

Bridging Funding Gaps In Micro, Small, And Large Businesses

ANOTHER GOOD READ

CBN Unveils New Liquidity Instruments For NIFIs
Business

CBN Clarifies BVN Fee For Nigerians In Diaspora

5 days ago
World Bank Approves $65m Loan For Nigeria’s SPESSE Project
Lead-In

World Bank Approves $65m Loan For Nigeria’s SPESSE Project

6 days ago
Nigeria’s Money Supply Falls to ₦119trn In May Amid CBN Tightening
Lead-In

Nigeria’s Money Supply Falls to ₦119trn In May Amid CBN Tightening

6 days ago
FG Okays 37 New Oil Routes To Halt Theft
Lead-In

FG Okays 37 New Oil Routes To Halt Theft

6 days ago
Nigeria’s Power Generation Rises By 10.92 % In Q1 2025
Lead-In

Nigeria’s Power Generation Rises By 10.92 % In Q1 2025

6 days ago
Foreign Artisans Taking Over Local Jobs
Cover

Foreign Artisans Taking Over Local Jobs

6 days ago
Next Post
Bridging Funding Gaps In Micro, Small, And Large Businesses

Bridging Funding Gaps In Micro, Small, And Large Businesses

Most Recent

Trump Cryptocurrency Drops Amid US Tariff Backlash

Trump Threatens 10% Tariff On Countries Aligning With BRICS

July 7, 2025
China Hits US With Retaliatory Tariffs, Launches Probe Into Google Practices

China Responds To Trump’s Tariff Threat Against BRICS-Aligned Countries

July 7, 2025
CBN Unveils New Liquidity Instruments For NIFIs

CBN Clarifies BVN Fee For Nigerians In Diaspora

July 7, 2025
Labour Institute’s DG Hails Tinubu On Rights Protection, Nigeria First Policy

Fiscal Governance Lifeblood Of National Development— Tinubu

July 7, 2025
Labour Institute’s DG Hails Tinubu On Rights Protection, Nigeria First Policy

At BRICS Summit,Tinubu Demands Reform Of Global Financial, Health Systems

July 7, 2025
LG Launches “Radio Optimism” Campaign

LG Launches “Radio Optimism” Campaign

July 7, 2025
Are Africans Genetically Inferior?

Are Africans Genetically Inferior?

July 7, 2025
Jaiz Bank Lifts NYSC Camp Spirit With Thrilling Football Match

Jaiz Bank Lifts NYSC Camp Spirit With Thrilling Football Match

July 7, 2025
Advertise with us

© 2024 | National Economy

No Result
View All Result
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy

© 2024 | National Economy