Nigeria raises rates 50bp, flags further hikes

Nigeria's central bank raised rates to 10% and warned that policy would need to tighten in the future with "huge fiscal injections" expected.

The central bank's monetary policy committee expressed concern over inflationary effects from the increased spending. "The Committee noted the actual and potential impact on liquidity of the recent distribution of the Naira equivalent of $2billion excess crude oil revenue and the second round distribution of same amount scheduled for June 2008," the min