Thursday, June 05, 2014 10:18 PM / FDC
The prices of new cars have increased by over 40%. For example, the Yaris is now N4.8m, up from N3.4m in May 2014. This is because of the new duty on cars that is likely to push up general prices, inflation, and could undermine the vision of the new CBN Governor.
The new CBN Governor in his maiden press briefing wants to have a strong naira, lower interest rates and mild inflation; a very difficult combination.
The markets have reacted ambivalently and are awaiting results. This is at a time when the European Central Bank made history by lowering the European deposit rate to (-0.1%) p.a.; the first major Central Bank to use a negative rate.
The euro fell to its lowest in four months after the move.
In this edition of the LBS executive breakfast session, Bismarck Rewane and the FDC team try to make sense of the scope of the macro-economic challenges and the magnitude of opportunities emerging from recent policy changes.
Enjoy your read...