ABUJA, May 21 (Reuters) – Nigeria’s central bank raised its benchmark lending rate by 150 basis points to 26.25% from 24.75% NGCBIR=ECI, in a decision announced on Tuesday.
Analysts had widely predicted another hike given inflation has continued to soar and the local naira currency NGN=D1 has been highly volatile.
The decision is the third rate increase this year, after hikes of 200 basis points in March and 400 basis points in February.
Inflation reached a 28-year high of 33.69% year-on-year in April NGCPIY=ECI, spurred by the government slashing petrol and electricity subsidies and twice devaluing the naira.
(Reporting by Chijioke Ohuocha, Elisha Bala-Gbogbo, MacDonald DzirutweEditing by Bate Felix)
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Nigeria’s central bank raises benchmark rate to 26.25% – CNBC Africa
