Nigeria Raises Key Rate on Threat of Faster Inflation
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Nigeria’s central bank raised its benchmark interest rate by a quarter of a percentage point and increased the reserve requirement in an attempt to head off faster inflation.
The monetary policy rate was raised to 6.5 percent, Lamido Sanusi, governor of the Central Bank of Nigeria, said today in Abuja, the capital. The borrowing and lending rates were increased by the same margin to 4.5 percent and 8.5 percent respectively. The bank raised the reserve requirement to 2 percent from 1 percent.