Introduction
The economic and social disruption caused by the pandemic and its adverse effects on the global economy are still very evident. The pandemic triggered an economic fallout leaving tens of millions of people at risk of falling into extreme poverty.
While new vaccines have been discovered and are now being deployed in some countries, the number of undernourished people currently estimated at nearly 820 million, could increase by more than 320 million.
We posit that with International Monetary Fund (IMF) and World Bank 2020 economic growth forecast at -4.35% and -4.4% respectively, more uncertainty lies on the path to global recovery and systemic changes triggered by the pandemic may persist for longer.
By Emeka Anaeto
Nigerian money market interest rates are on the rise. This marks the end of the long (over a year) decline trend. But what next?
Industry analysts at Coronation Merchant Bank, offer some insights, thus: ‘‘In our view the key determinants are how the 2021 budget deficit will be financed and how normal (given that the present interest rate/inflation mix is not normal) the Central Bank of Nigeria (CBN) wants interest rates to be.
‘‘Two weeks ago, we asked whether the CBN wanted to put a floor under market interest rates. Now we have an answer, namely that the effect of the CBN’s Special Bills issue (bills granted to banks in respect of their excess cash reserve ratio held by the CBN), with a yield of 0.5%, has been to support interest rates.’’