According to CBN, the economy of Nigeria is set to weaken further as inflation increases.
62.1% of respondents of a CBN survey opined that the economy might weaken further if the inflation rate is not rapidly dealt with.
Should the current inflation be ignored without immediate and effective plans to mitigate it, the Nigerian economy is bound to weaken further.
This update was publicized in the Central Bank of Nigeria’s Inflation Attitudes Survey Report for the third quarter of 2020(Q3 2020).
The Central Bank of Nigeria’s Inflation Attitudes Survey Report survey was executed by the Statistics department of the Central Bank of Nigeria (CBN).
Highlights of the survey report:
•62.1% of the respondents were of the opinion that the economy may weaken further than it was at the beginning of the year, if the current and existing high inflation rate is not instantly dealt with.
•A preponderance of the households had no idea on the trend of interest rates in the past 12 months. For instance, the people who speculate that interest rates had surged in the last 12 months are 35.3% while 8.3% of the respondents assume that interest rates had subsided, and 43.4% had no understanding of what transpired in the last 12 months.
•On the prospects about how the interest rates on bank loans and savings would move over the next 12 months, 29.8% are of the impression that the rates will surge, while 16.7% think that the rates will subside, and 40.6% had no understanding of what would take place.
•In agreeing on which one is better, a larger number of the respondents still nominate higher interest rates over higher inflation. For instance, 25.6% choose interest rates to rise to keep inflation down, 43.3% prefer higher interest rates and 31.1%of the respondent had no clue at all.
What you need to know.
•On quarterly basis, the Statistics department of the Central Bank of Nigeria, executes surveys to convey the impressions of households on transitions in prices of goods and services, incorporating interest rates in the last twelve months and their anticipations of alterations over the next twelve months.
•The Q3 2020 Inflation Attitudes Survey was executed between September 21 and 30th with a random sample size of 2,070 Households from 207 Enumeration Areas (EAs) across the country and had an acknowledgment rate of 98.1%.
•The impressions of the respondents are very important in comprehending the degree of knowledge of the general public in relation to the country’s monetary policy framework and valuable for effective monetary policy formulation.