Nigeria’s central bank raised its benchmark interest rate from 14% to 15.5%, as it seeks to curb rising inflation.
This is the first time the rate has gone over 14% since it was adopted in 2006.
The recent hike means the country has now raised borrowing costs by 400 basis points, making it one of four central banks on the continent that have hiked by 300 basis points or more this year.
The MPC also increased the cash reserve ratio, the amount of money lenders have to keep at the central bank, to 32.5% from 27.5%.
Annual inflation in Nigeria rose to a 17-year high of 20.5% in August, and is at more than double the ceiling of the central bank’s target band.
The central bank expects the economy to expand 3.5% this year, compared with its forecast of 3.3% made at its previous meeting.
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