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CBN Raises MPR to 14%.

What is MPR? This is the rate at which banks borrow from the Central Bank. It was Raised from 12%.
1. Cost of borrowing will go up.
2. Companies that already are not doing well due to the harsh economic climate will sink further into debts. This may mean more retrenchments and more dependants coming your way.
How one economist summarised the outcome of the MPC meeting:
He said, “CBN has pushed the panic button. Foreign investors will not come. Nigeria will sink deeper into recession”.
He gave a frightening revelation when he said many banks are on the CBN Discount Window.
What is a Discount Window – where banks go to the CBN for life support.
What you need to do:
1. Brace for more economic impact.
2. Cut off wastes. Postpone that champagne party. Leave out buying that luxury car. Planning to move to a duplex from a flat? Suspend that idea for now.
3. If you have some little change, please buy USD, no matter how small.
4. Generally keep a low profile for now.

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