CBN survey shows why 65% of Nigerians want lower interest rates

• The CBN Household Expectations Survey shows that much than two-thirds of Nigerians privation the CBN to trim involvement rates
• Since 2024, the CBN Monetary Policy Committee has raised involvement rates severally to 27.5%
• However, the committee yet decided to clasp rates past period aft considering the existent ostentation figures

Legit.ng journalist Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.

Two-thirds of Nigerian households privation the Central Bank of Nigeria to trim involvement rates, arsenic they judge it would assistance velocity up economical recovery.

This is 1 of the findings contained successful the caller CBN Household Expectations Survey conducted successful February 2025.

The survey covered nationalist cognition astir cardinal economical issues similar involvement rates, inflation, speech rates and economical assurance implicit the adjacent six months.

The CBN Monetary Policy Committee made the determination to clasp involvement rates aft considering the latest ostentation figures. Photo credit: CBN
Source: Getty Images

CBN holds Interest rates astatine 27.5%

Recall that the Central Bank of Nigeria yet decided to clasp the Monetary Policy Rate (MPR), besides known arsenic the benchmark involvement rate.

This determination followed their appraisal of the rebased user terms scale (CPI) released by the National Bureau of Statistics (NBS).

This near the involvement rates astatine 27.5%, and different rates were besides retained by the committee.

Why Nigerians privation CBN to trim involvement rates

The findings of the Household anticipation survey showed that 10.4% enactment raising involvement rates, 12.5% privation CBN to clasp the rates, portion 11.6% were undecided.

The respondents noted that little involvement rates would construe to improved finances for some households and businesses and trigger economical maturation and stability.

For ostentation and its effect connected purchasing power, 68.1% stated raising involvement rates further would pb to a accelerated summation successful prices, trim purchasing powerfulness and weaken the economy, portion 18.3% thought accrued prices would marque nary quality successful the economy.

Another 8.1% were undecided, portion astir 5.5% believed that the rising outgo of surviving could marque the system stronger.

Recall that the caller rebasing of the CPI led to a crash successful header inflation from 34.8% to 24.48%, and nutrient ostentation from 39.4% to 26%.

Businesses complained astir the difficulties of expanding successful 2024 owed to precocious involvement rates, and so, welcomed the determination to clasp rates successful February. Photo credit: CBN/Contributor
Source: UGC

Nigerians stay optimistic astir economical recovery

The survey revealed improving user sentiments passim the period, with user assurance moving from -10.8 scale points successful January to 5.8% successful February, and yet up to 4.0 scale points successful May 2025.

It is adjacent expected to fortify further to 12.3 scale points by August, showing that Nigerians stay optimistic that determination volition beryllium economical betterment successful 2025.

Experts respond to CBN's accrued involvement rates

In related news, the CBN's past determination to summation interest rates to 27.5% successful November 2024 sparked a batch of reactions.

Dr. Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, raised concerns implicit the declining GDP growth, particularly successful cardinal sectors.

He noted that lone fiscal services appeared to beryllium growing, portion sectors similar agriculture, manufacturing and existent property that impact regular living, were struggling.

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng