Nigeria’s central bank raises benchmark rate to 26.25%

Nigeria’s central bank raised its benchmark lending rate by 150 basis points to 26.25% from 24.75% point 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.