Central Bank raises MPR from 22.75% to 24.75%

[Marvelockg]

In a recent news posted on the CBN official Facebook page, the Central Bank of Nigeria's Monetary Policy Committee has increased the interest rate it sets (MPR) from 22.75% to 24.75% with a significant increase of 2%. Which means that getting loans from banks now will come with increased interest above what has been obtainable before now.

I know they might be trying to improve the economic situation of the country but loans have been one major help SMEs have strongly relied on to bring thier brilliant business ideas to light and most small businesses have complaimed that the curent interest rate is too much and seeing this increase, what's your take on this?

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1714872720

[1714872720]

1714872720

[1714872720]

1714872720

[1714872720]

1714872720

[Antotena]

In a recent news posted on the CBN official Facebook page, the Central Bank of Nigeria's Monetary Policy Committee has increased the interest rate it sets (MPR) from 22.75% to 24.75% with a significant increase of 2%. Which means that getting loans from banks now will come with increased interest above what has been obtainable before now.

I know they might be trying to improve the economic situation of the country but loans have been one major help SMEs have strongly relied on to bring thier brilliant business ideas to light and most small businesses have complaimed that the curent interest rate is too much and seeing this increase, what's your take on this?

Nice topic but people didn't interact because they probably don't understand the terms and what language you are communicating about.

The primary reason why central bank do increase MPR rate is to reduce inflation. If you observe carefully you will understand that since this government assume the office, the country has not been stable, we have had so much inflation and what th central bank is trying to do is to remove excess money from circulation and removing excess money reduce inflation theoretically. So increasing MPR is discouraging borrowing from business companies and cooperation.

The central bank increases the value so that commercial banks wouldn't have enough money to give out, when you increase rate of interest to business people, they would be discourage to borrow and we will have less money in circulation but this is temporary, they can reduce it when they have achieved their goal.

[Franctoshi]

The end goal is that they're doing this to try to strengthen the Naira which has suffered greatly against the United states dollars in the past few months which thus has caused the skyrocketing food and services prices lately, the Federal government through Central Bank simply trying to shrink liquidity and in other to stabilizing the Naira against other foreign currencies, which we have seen gaining significant strength when compared the current price 1300 to the highest level that it traded around #1900/1$.

[Marvelockg]

The central bank increases the value so that commercial banks wouldn't have enough money to give out, when you increase rate of interest to business people, they would be discourage to borrow and we will have less money in circulation but this is temporary, they can reduce it when they have achieved their goal.

the thing is that the federal government has failed in most of their short termed plan that anything they bring out as a policy to revive the economy has always had an element of ingenuity in it.

I know that this might help to reduce the rate of inflation and also strengthen the Naira in the long run but they seem to be missing out on other core variables that could also go a long way in boasting our economy. If they had made a good plan to support local farmers with loans and machineries that will increase our rate of productivity, wouldn't that have helped out to a very large extent? The rate at which we underate and pay little or no attention to how viable our land resource are and how we can make the best out of it is just too bad. Let's hope that this theoretical policies would translet into real result in reality oh.

[EL MOHA]

I know that this might help to reduce the rate of inflation and also strengthen the Naira in the long run but they seem to be missing out on other core variables that could also go a long way in boasting our economy. If they had made a good plan to support local farmers with loans and machineries that will increase our rate of productivity, wouldn't that have helped out to a very large extent? The rate at which we underate and pay little or no attention to how viable our land resource are and how we can make the best out of it is just too bad. Let's hope that this theoretical policies would translet into real result in reality oh.

Yes the agricultural sector is the most under valued sector in Nigeria if not now. But should we blame the government from not looking at it currently, I will say NO. The government of the past administration wasted almost their entire 8 years in this sector, they we’re different initiatives by the government to revive agricultural production. The most common initiatives was given out grants and loans to the Famers, a clear example is the RIFAN program by former president for the production of local rice which even lead him to ban the importation of this rice so that we can prioritize the locally made ones. Many people utilized the opportunity but Many squandered the opportunity.

The most disheartening part was when those assign to give out those loans enriched them selves and didn’t give out the loans or gave out little from it and this yielded nothing. So personally I think this current government need to look into giving out loans to farmers and come out with improve method before they re introduce it.

[DaNNy001]

The end goal is that they're doing this to try to strengthen the Naira which has suffered greatly against the United states dollars in the past few months which thus has caused the skyrocketing food and services prices lately, the Federal government through Central Bank simply trying to shrink liquidity and in other to stabilizing the Naira against other foreign currencies, which we have seen gaining significant strength when compared the current price 1300 to the highest level that it traded around #1900/1$.

I think the plan is working from one aspect and failing from one side and that would be the failure of things like foodstuffs and electronic price to reduce. We have seen a significant gain in the price of naira against the dollar but still upon all this gain , the cost of things still remains the same and it's quite sad, well  if you ask me I think it's because of the lack of price regulations on commodity that has lead to this.