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Nigeria’s central bank raises lending rate to 15.50% to counter inflation. Smart move?

Published

2 years ago

September 27, 2022

Amidst the continued inflation rate in Nigeria, the country’s central bank hiked its main lending rate by 150 basis points to 15.50%.

Nigeria’s apex bank made the position on Tuesday. The rate is at the highest level yet and more than forecast, forging ahead with efforts to rein in inflation and ease pressure on the currency.

According to the latest report by Nigeria’s official data source, the National Bureau of Statistics (NBS), the country’s inflation rose for a seventh straight month in August to 20.52% from 19.64% in July.

The rise in the interest rate is the third in a row. That according to analysts means the central bank has delivered a total 400 basis-point increase this year, it’s most hawkish in a single cycle.

The central bank governor, Godwin Emefele said in a news conference “the MPC noted that a tight policy stance would help consolidate the impact of the last two policy rate hikes, which is already reflected in the slowing growth rate of the money supply.

“It also felt that an aggressive rate hike would slow capital outflows and likely attract capital inflows and appreciate the naira currency,” Emefiele added.

Like in other African countries, the ongoing war in Ukraine to a large degree has compounded Nigeria’s economic woes, hiking prices of imported food and inputs for fertilizers, as well as increasing oil price volatility and uncertainty around capital flows, but more disturbing on its monetary life is the industrial scale of oil theft which has greatly disrupt the country’s access to foreign exchange.

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VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

4 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

1 day ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”