Nigeria hikes main rate to highest ever level
STORY: Nigeria's central bank has hiked its main lending rate to its highest level yet as it seeks to rein in inflation and ease pressure on the naira currency.
Tuesday's (September 27) rate hike, by 150 basis points to 15.5%, was the third in the row and means that the central bank has delivered a total 400 basis-point increase this year.
According to analysts, that's the most hawkish in a single cycle.
But with inflation at its highest in 17 years, the central bank's Governor Godwin Emefiele told a press conference that the Monetary Policy Committee had to continue with an aggressive stance.
Annual inflation rose for a seventh straight month in August to 20.52% from 19.64% in July.
Traders said the naira weakened to a new low of 725 against the dollar on the black market this week, and within a band of 415-435 on the official market.
High inflation and weak economic growth, as well as mounting insecurity, are major issues for voters as Nigeria heads towards a national election in February.
Responding to reporters' questions, Emefiele declined to rule out further rate hikes to fight inflation.
