Fidelity bank banner Bayelsa State banner
CBN mulls interest rate increase

By News Express on 17/04/2016

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,590


The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, on Saturday, hinted at a probable increase in lending rates sequel to the unrelenting headwinds that keep pushing up the nation’s inflation rate.

Emefiele, who spoke with journalists on the sidelines of the ongoing World Bank/IMF Spring Meetings in Washington DC, United States, said having the inflation rate higher than the Monetary Policy Rate (MPR), which is the benchmark lending rate, was not an acceptable model.

The CBN governor said: “Truly, Nigerians expect that if they want to access fund, they should do so at a low interest rate but, of course, you will agree with me that with the increase in inflation rate from about 11.3 per cent that it was in February to almost about 12.4 per cent in March, naturally what you find is that interest rate will still have to go up sort of because having the MPR below the inflation rate is not a model that is acceptable. Interest rate has to be higher than inflation rate. So, that is what we expect.”

He, however, added that in spite of the hostile domestic and global fiscal headwinds, the apex bank would continue to do everything reasonable to stimulate broad-based growth of the economy through innovative monetary policy measures.

According to him, the bank’s supportive monetary measures would continue to be focused on critical sectors such as agriculture, real and mining with the potential of boosting domestic production and, by implication, help in the efforts to sustain macroeconomic stability and inclusive growth.

Speaking on the shocks being experienced by oil-exporting countries, Emefiele said that mitigating the negative impact could be achieved through the diversification of the economies and described the drive by the government to diversify the economic base as a step in the right direction.

He said, “Practically, all are facing the challenges and everybody is looking at the possibility of diversifying their economies from being over-reliant on oil. So, obviously we are on the right course, but the challenges are still there, not just for Nigeria but for different countries in the world.

“But what is important is, I re-emphasise, that we are on the right course by saying that we need to continue to diversify our economy and I think for Nigeria, I see light at the end of the tunnel because we have a couple of Nigerian investors that have embraced the diversification of the Nigerian economy.”

Restating the commitment of the CBN to stimulate growth in critical sectors of the economy, the governor explained  that the regulatory financial institution would continue, as much as possible, to see how  it could “continue to increase our interventions to certain sectors of the economy, particularly agriculture, mining, the real sector and other areas that will boost domestic production.”  (Sunday Tribune)

•Photo shows CBN Governor Emefiele.

Source News Express

Posted 17/04/2016 07:28:36 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
ASUU strike: Our hunger strike successful —HURIWA •Top...

NLC warns state governors to pay salary arrears...

Heirs Holdings appoints Director of Marketing and Corporate...

Tension at NNPC as Kachikwu disobeys President Buhari...

National Assembly to pass 2018 Budget on April...

2015: Don’t be misled by fake prophecies, Akpabio...

Dakuku Peterside’s election as AAMA Chairman well deserved...

Desperate search for 4 runaway lions in South...

Journalists allege bias, reject judge

Japanese moneybag promises Nigeria’s Dream Team players $30,000...

Abuja residents send SOS to FCT Minister over...

No power can bring me down: Wike

 

Latest News In Ekiti, stomach infrastructure has changed hands, By ‘Fisayo Soyombo Hoodlums attack Police Commissioner Imo APC Stakeholders Forum exposes Okorocha Court remands alleged killer of ex-Deputy Governor’s daughter Police arrests cleric for raping student as spiritual cleansing Kaduna residents protest alleged land grabbing by Air Force Dasuki set to regain freedom; Judge signs bail application Couple murdered in their sleep in Anambra Executive Order 6 most potent weapon against corruption, says FG Third Mainland Bridge will be closed for 3 days, not 27 months, says Fashola Killing of Policemen: N5m bounty for information about attackers Ganduje, Emefiele, Dankwambo, Amaechi, others listed for honour

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (361,237 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (357,953 views) Shameless Genevieve Nnaji exposes breasts in public (286,249 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (234,894 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (214,082 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (212,278 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (186,081 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (168,065 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (156,101 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (152,395 views) Lagos plane crash: Journalist releases victims’ names (147,310 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (138,602 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (52) Business & Economy (3,342) Business Verdict (45) Columnists (886) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (516) Features (614) Global Business Monitor (284) International (2,130) Interview (157) Live Commentary (28) Love Matters (127) News (37,171) Opinion (1,022) Pidgin (10) Politics (5,576) Religion (783) Sports (1,610) Stock Watch (33) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

FRANCE vs CROATIA 4-2 Highlights & Goals 2018

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement