Nigeria acts to counter likely inflationary surge

The Central Bank of Nigeria has raised rates and its cash requirement ratio on concerns that inflation could soar in the coming months.

The central bank pushed its benchmark monetary policy rate up by a quarter point to 10.25% and the cash requirement ratio a full basis point to 4%, fearful that imported inflation, fiscal expansion and rampant private-sector borrowing could lead to a sharp acceleration in price growth.

Annual inflation rose from 7.8% in March to 8.2% in April, largely on the