LOCAL AFRICAN REALITY

LOCAL AFRICAN REALITY

Breaking

Cut interest rates to boost economy - Tinubu

The National Leader of the All Progressives Congress, Asiwaju Bola Tinubu, has said the Central Bank of Nigeria should seize the opportunity of the coronavirus crisis to lower interest rates in a bid to boost the nation’s economy.

Tinubu also urged the Federal Government to demand a renegotiation of existing loans or debt relief from the World Bank and other development finance institutions.

Tinubu said the country must retreat from high interest rates “if we want investment borrowing to attain levels that actually increase private-sector growth and job creation.”

According to Tinubu, high interest rates, along with an unreliable power supply, combine to form a steep obstacle to sufficient real-sector investment, growth and productivity.



He said the country had become too reliant on foreign borrowing, and had created a highly imbalanced and imperfect economy.

Tinubu said, “On one hand, high rates are used to scare domestic investment borrowing, thus undermining income, production and consumption.

“On the other hand, high interest rates are used to attract foreign creditors who must be repaid with an increasing percentage of our intake of dollars.”

He said to stimulate their economies, the central banks of all major economies had driven their prime interest rates below one per cent and nearer to zero per cent.

Tinubu said the financial authorities should consider formulating regulations that banks must reduce the high interest rates on existing business loans to the new lower general rate. Punch

No comments:

Disclaimer
Most News articles reported on LOCAL AFRICAN REALITY are a reflection of what is published in the media. LOCAL AFRICAN REALITY is not in a position to verify the accuracy of daily news articles, however, we ensure that only news articles from credible sources are reflected in this service. Independent opinions which are mailed to us may also be published from time to time at our discretion, however the sources for these independent articles will be clearly stated.


Share your story with us: SMS: +23409067561649, Whatsapp: +2349067561649, Email: localafricanreality@gmail.com or qubesentertainmentmagazine@yahoo.com
Receive Alerts on: Whatsapp: +2349067561649, Twitter: @localafricanr