Nigerian central bank raises interest rate

The Nigerian central bank has raised its benchmark interest rate MPR from 8% to 9% because of rising inflation, officials said on Thursday, 4 October.

8 Oct 2007

The Monetary Policy Rate is the rate at which the Central Bank of Nigeria lends to commercial banks. The rate was reduced by 2% in June.

"Inflation might surge if we don't take action," CBN governor Charles Soludo told reporters, adding that a planned increase in government spending could reverse what had been a slight decline in inflation.

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