Nigeria raises key interest rate to historical high
Rate now stands at 27.25%, despite slight drop in headline inflation last month
Nigeria’s central bank raised its key interest rate by 50 basis points today (September 25). Following the increase – the fifth this year – the policy rate stands at 27.25%, a new historical high.
The Central Bank of Nigeria (CBN) made the decision despite the fall in headline inflation, which went from 33.4% in July to 32.15% in August. It also raised the cash reserve ratio from 45% to 50%.
The CBN said that even though inflation had been falling, “a lot more” work was needed to stabilise prices
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