Fidelity bank banner UBA 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: 1,730


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

 

You may also like...
US adds 8 countries to list of worst...

Lawmakers’ aides give Buhari, Osinbajo 7 days to...

Oil price nosedives again as OPEC fails to...

Amnesty International working to demoralise Nigerian troops, says...

‘AMAECHI, not Aso Rock, RESPONSIBLE FOR RIVERS’ ECONOMIC...

Breaking News: Governor Uduaghan withdraws from 2015 Senatorial...

Why Musa Daura must be sacked as DG...

Why Kids (and Adults) Invent Imaginary Friends?

Police kills innocent man, injures 2 others

Nigeria, foreign countries share data on bank accounts,...

Aggressive construction of roads soon to commence in...

CSOs hail Kaduna, Sokoto on release of immunization...

 

Latest News N5.8bn Controversy: Osinbajo has questions to answer — Reps Troops arrest 19-year-old female suicide bomber trying to hit Maiduguri Nigeria needs 155,000 more doctors INEC vows to expose holders of illegal PVCs FG awards N206bn contract for main work of Second Niger Bridge Dasuki boycotts trial over FG’s disobedience of court orders Embattled Kogi workers smile, get salaries Reps adjourn sitting over faulty sound system Police, service provider probe fake social media posts Senate adjourns sitting over low turnout of lawmakers Buhari’s Social Investment Programme is largesse for supporters, cronies — Atiku/Obi Advocacy Group Impeachment of Ondo Speaker, Deputy irreversible — New Speaker

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (419,846 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (389,393 views) Shameless Genevieve Nnaji exposes breasts in public (322,199 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (270,558 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (243,597 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (227,231 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (208,623 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (190,113 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (175,417 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (168,342 views) Lagos plane crash: Journalist releases victims’ names (164,793 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (151,738 views)

 

Zenith Zero Balance First Bank banner

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (72) Business & Economy (3,785) Business Verdict (54) Columnists (959) Complaints & Requests (94) Enterprise & Opportunities (208) Entertainment (565) Features (667) Global Business Monitor (309) International (2,675) Interview (166) Live Commentary (28) Love Matters (146) Maggie's Blog (32) News (40,496) Opinion (1,140) Pidgin (13) Politics (7,702) Religion (896) Sports (1,770) Stock Watch (35) AMA & Al Jazeera Global Update

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera