In Nigeria Inflation Declines Further to 11.61% as US Hikes Interest Rate


Ndubuisi Francis in Abuja

For the 16th month, inflation rate continued a downward trajectory, declining from 12.48 per cent in April to 11.61 per cent in May.

This is just as the US Federal Reserve Wednesday hiked its benchmark short-term interest rate a quarter percentage point and indicated that two more increases are likely this year.

The Fed pushed interest rate to a range of 1.75 per cent to two per cent and this may have negative effect on capital flows to Nigeria and may compel the Central Bank of Nigeria (CBN) to maintain its tight monetary policy stance.

THISDAY had reported on Monday that Nigeria’s external reserves has maintained a sustained decline in the past three weeks as foreign portfolio investors (FPI) continued to weigh the possibility that the US Fed would raise interest rate at its meetingWednesday.

Meanwhile, the…

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