Thursday January 26, 2012
Nigeria will not raise benchmark interest rates as a result of the first round of inflationary effects from the removal of a fuel subsidy, Central Bank Governor Lamido Sanusi said on Thursday.
The central bank is due to hold its first interest rate setting meeting for the year next Monday and Tuesday.
"In January, because of the removal of subsidy there's going to be inflationary pressure. Usually we will not respond to that directly because it's a first round effect ... so we will not raise interest rates in response to inflationary pressure from the rising oil prices," Sanusi told CBNC Africa television.
Source: Reuters (Reporting by Chijioke Ohuocha)