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Gifted Analysts

Research and Analytics

Author: Okeowo Ebenezer

Understanding the Rise in US Long-Term Rates

By Okeowo EbenezerPosted on Posted in Africa & World EconomyTagged , , , , , , No Comments on Understanding the Rise in US Long-Term Rates

The rise in long-term US interest rates has become a focus of global macro-financial concerns. The nominal yield on the benchmark 10-year Treasury has increased about 70 basis points since the beginning of the year. This reflects in part an improving US economic outlook amid strong fiscal support and the accelerating recovery from the COVID-19 crisis. So an increase would be expected. But other factors like investors’ concerns about the fiscal position and uncertainty about the economic and policy outlook may also be playing a role and help explain the rapid increase early in the year.

Monetary Policy at a Crossroad: Policymakers Need to Break Promise of Easy Money to Avoid Boom-Bust

By Okeowo EbenezerPosted on Posted in Business & FinanceTagged , , , , , , No Comments on Monetary Policy at a Crossroad: Policymakers Need to Break Promise of Easy Money to Avoid Boom-Bust

The Federal Reserve’s new policy approach is that policymakers want to see “actual progress, not forecast progress” before deciding to change its policy stance. Substantial actual progress is occurring in the economy, some faster than others. How much monetary accommodation is needed to meet the ultimate employment and inflation objectives is debatable. But it is less than when the pandemic started and less after the passage of $1.9 trillion in federal stimulus.

Determining when a policy stance has become too accommodative is not an easy matter—but enabling excessive risk-taking to become well-entrenched is comparable to past policy mistakes by allowing a build-up of inflation and inflation expectations. Both are difficult to unwind, and past episodes have shown it is impossible without triggering significant adverse effects in the economy.

What to do When Low-for-Long Interest Rates are Lower and for Longer

By Okeowo EbenezerPosted on Posted in AgenciesTagged , , , , No Comments on What to do When Low-for-Long Interest Rates are Lower and for Longer

Central banks have played a pivotal role in easing financial conditions in response to the COVID-19 shock, and helped avert a catastrophic downturn. However, their work is far from done. Yet more monetary stimulus will be needed to support economic recovery, and central banks are implementing innovative new strategies to provide it.

Analysis of the Debt Profile of Nigerian States

By Okeowo EbenezerPosted on Posted in EconomyTagged , , , , 2 Comments on Analysis of the Debt Profile of Nigerian States

Analysis into the domestic debt profile of the 36 states and FCT shows that Lagos state with total debt of N444.23 billion has the highest domestic debt stock outstanding among the states and this represents 10.82% of the total domestic debt stock. Lagos, Abuja and Port Harcourt in combined have total debt worth 19.92% of the total domestic debt stock of the 36 states and the FCT. Of the top 10 states based on debt, only Lagos, Ogun, Rivers, Akwa-Ibom and Delta states are among the top 10 states based on 2019 Internally IGR.

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