The Central Bank of Nigeria (CBN) says the majority of Nigerians expect interest rates to rise in the next three months.
households’ expectations regarding interest rates on bank loans for the next three months “indicate that 53.8 percent expect the rates to rise, 12.0 percent believe they will decrease, 15.9 percent anticipate they will remain unchanged, while the remaining 18.3 percent are unsure”.“This suggests that most respondents expect Interest Rates on Bank Loans to increase over the next three months,” CBN said.
“When asked about how interest rate on bank loans have changed over the past 3 months, 60.8 percent felt that interest on bank loan had risen, 3.2 percent of the respondents thought Interest on bank Loan had gone down, 17.8 percent thought it had not changed, while 18.1 percent had no idea,” CBN said.“The responses show that more households believe interest rates on bank loans have risen in the last 3 months.
“75.2 percent of the respondents believed that the economy would end up weaker, 6.0 percent opined that it would be stronger, while 13.7 percent of the respondents believed it would make no difference,” the apex bank added.CBN said when asked about the impact of higher interest rates on prices, 56.8 percent of respondents said they believed prices would rise in the short term, 16.0 percent disagreed, while 8.2 percent were unsure.
“Among the responses, 54.3 percent agreed that a rise in Interest Rates would lead to higher prices in the medium term, while 17.8 percent disagreed. Additionally, 20.0 percent were neutral, and 7.9 percent were unsure.
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