Nigeria hikes rates

The Central Bank of Nigeria said on Thursday it would raise its benchmark monetary policy rate by a full percentage point to 9%.

Charles Soludo, the governor of the central bank, said: "Inflation might surge if we don't take action."

The latest inflation figures show a fall for the second month in a row 6.4% in June to 4.8% in July then 4.2% in August. But non-food inflation has risen and Soludo said he was concerned that government spending could lead to inflation if rates remained unchanged.

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