The Central Bank of Nigeria (CBN) has raised interest rate from 12 per cent to 14 percent.
Speaking after the monetary policy committee (MPC) meeting in Abuja on Tuesday, CBN governor, Godwin Emefiele, said the committee voted to hike interest rates in the face of rising inflation.
The CBN said the decision was taken to encourage savings and investment.
The recent hike is the highest in 10 years. In May, the interest rate was raised from 11 percent to 12 percent.
Cash reserve ratio (CRR) and liquidity ratio were maintained at 22.5 percent and 30 percent respectively.