Nigeria hikes policy rate to combat soaring inflation

To combat soaring inflation, the Central Bank of Nigeria hiked its policy rate by more than expected yesterday to 14 percent from 13 percent. The decision to hike was unanimous, although six members voted to raise by 100bp, three by 50bp and one each for increases of 75bp and 150bp. Governor Godwin Emefiele signalled the prospect of even higher borrowing costs, saying that “If inflation continues at this particularly aggressive rate, we will continue to tighten.”