Nigeria unexpectedly hikes interest rates

29.May.2011 · Posted in business

ABUJA, May 24 – Nigeria’s monetary policy committee raised its benchmark interest rate by 50 basis points on Tuesday, wrong footing many analysts as it stepped up efforts to curb inflation and ease pressure on the local naira currency.

In a further tightening measure, the central bank raised lenders’ cash reserve requirements to 4 percent of deposits from 2 percent.

Most analysts had forecast the central bank would keep rates on hold at 7.5 percent after the committee unexpectedly hiked rates by a full percentage point at its last meeting in March.


Source: Reuters Africa newsletter

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