Okware Emmanuel, April 2026
The main argument is that broad money (bank deposits) is being created mainly through the public-sector credit counterpart rather than lending to the private sector. This still represents genuine, potentially expansionary money creation that can affect nominal demand, asset prices, and inflation pressures in the economy. If current deposit growth (over 17%) continues while real GDP growth remains projected at 6.5-8%, there is a risk of excess money relative to the economy’s demand for money balances and productive capacity. This could lead to rising asset prices, such as real estate and other important assets, which may later contribute to broader inflation.
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