The board of Nigeria’s central bank voted unanimously on Tuesday to keep the monetary policy rate at 6 per cent and the key lending rate at 8 per cent, though it reduced the borrowing rate from 4 to 2 per cent. Inflation poses a “serious threat in the months ahead,” said governor Lamido Sanusi. The all-item CPI rose to 12.4 per cent year-on-year in November from 11.6 and 10.4 per cent in the two previous months.
The board also chose to extend the guarantee on bank transfers to December 31, 2010. The Nigerian banking industry is still in serious trouble. Read more