ABUJA, Sept 19 – Nigeria’s central bank monetary policy committee on Monday raised its benchmark interest rate for the fifth time this year in anticipation of upward inflationary pressures and to support the weakened local currency.The MPC lifted its benchmark rate to 9.25 percent, up from 8.75 percent, a move at the top end of analysts’ expectations.
Central Bank Governor, Lamido Sanusi, said although inflation had declined in the last two-months, high government spending, a new minimum wage, the likely removal of fuel subsidies and a flood of expected liquidity from the state “bad bank” were all likely to push prices higher.
Source: Reuters Africa newsletter
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