According to the report, respondents were requested to indicate what they believed would happen to the Nigerian economy given increases in prices (inflation) and interest rates. In relation to interest rate, Nigerians were asked which of increase or decrease in interest rate would be best for the Nigerian economy? 33% believed a fall in interest rate would be best for the economy, 11.1% indicated higher interest rate would be best. Let’s not get it twisted, neither a rise in inflation rate (price increase) nor in interest rates would mean well for the economy. Indeed, interest rates increase result in increases in costs of production, which are passed on to consumers as increases in prices of goods and services.

Source: The Guardian February 10, 2019 05:53 UTC