Several months after the much-expected interest rate cuts from various central banks, it is getting more difficult to know when we will start having the first set of cuts.
In Nigeria, the Central Bank of Nigeria, CBN, at its last Monetary Policy Rate (MPR), was raised by 200 basis points from 22.75% in February to 24.75% in March 2024. At the next MPC, another 100 basis points might likely be added to the already all-time high rates.
While the hopes for a June rate cut in the US are now becoming more uncertain, the UK’s Bank of England, BOE, is not in a hurry to announce any reduction. What does this mean for your brand?
A continuous regime of higher rates could continue to reduce demands for discretionary spending while essentials could see slower demands as credit becomes more expensive and wages do not quite catch up with rates. Higher for longer rates require brand owners to be more innovative to ascertain how to become the preferred brand amid tighter pockets and higher prices.
At SBI Media, we have been partnering with brands that have survived inflation, recession, and higher rates. Talk to us today to design your brand’s future. You can reach us via email: info@sbimediaflogal.com.