Market Data 
ABUJA (Reuters) -Nigeria’s central bank hiked its benchmark interest rate by 150 basis points (bps) on Tuesday, responding to a continued rise in inflation in Africa’s most populous nation.
Central bank governor Olayemi Cardoso said the bank’s Monetary Policy Committee (MPC) was faced with a decision to either hike or hold rates while it observed the impact of previous hikes, but it opted for an increase in the interests of price stability.
The Monetary Policy Rate is now at 26.25%, up from 24.75%, and at its highest level since at least 2007.
“The balance of risks suggests further tightening of policy to build on the benefits from previous hikes,” Cardoso told a news conference.
Analysts had widely predicted another hike given inflation has continued to soar and the local naira currency has been highly volatile.
Inflation reached a 28-year high of 33.69% year-on-year in April, spurred by the government slashing petrol and electricity subsidies and twice devaluing the naira.
The decision is the third rate increase this year, after hikes of 200 bps in March and 400 bps in February. The bank’s MPC next holds a rate-setting meeting in July.
