A couple of weeks back, when posting the CBK’s announcement on the Central Bank Rate, I could not remember when the Monetary Policy Committee had raised the Central Bank Rate to 18% so I turned to the person next to me and asked:
“Ooga booga mooga mooo nnnghjepsnh hjjagiuiur oiupibaipiutir ?”
Well, what I had actually asked was “When did the CBK’s MPC raise the CBR to 18%?” but I could have been stating that pink elephants float in my marmalade from the incredulous look I received. A quick poll of folks at the office led to the realization that less than 2% of them had even the most basic idea on what the Central Bank Rate and the Monetary Policy Committee are.
Over a series of articles, we at the Money Academy will shed light on inflation, interest rates, the CBK, MPC, CBR and other related TLA (Three Letter Acronyms). We will cover Inflation (what it is, what causes it, its types, how it’s measured, how it’s controlled), interest rates (what they are, what drives them and how they are arrived at), and The Central Bank (Its role and function, the Monetary Policy Committee)
We’ll try and make this is short and as simple as possible