Browsing: Central Bank of Nigeria (CBN)

The recent Nigeria’s central bank rise of benchmark interest was the first one implemented by the monetary policy council of the central bank since July of 2016. Prior to that time, the apex bank favoured lower interest rates in the hope that it would encourage lending.

To counteract the persistently increasing cost of goods and services, however, the world’s most influential central bank has followed the pattern of other central banks throughout the world and raised interest rates.

Pundits are led to assume that the policies of the CBN have little to no influence since, unlike in other economies across the world, the rising inflation in Nigeria is driven more by supply than by demand.