Nigeria hikes rates by 150 basis points, more than forecast

LAGOS: Nigeria’s central bank hiked its main lending rate by 150 basis points to 15.50% in a decision announced on Tuesday.

A Reuters poll of economists had predicted a much smaller 50 basis point hike.

The rate decision comes after annual inflation rose for a seventh straight month in August, to 20.52% from 19.64% in July.

At its last monetary policy meeting in July, the Central Bank of Nigeria warned that it would continue tightening policy if inflation rose further.

High inflation, weak economic growth and mounting insecurity are major issues for voters as Africa’s biggest economy heads for a national election in February, when incumbent President Muhammadu Buhari will step down.