The Central Bank of Nigeria (CBN), the country’s supremely reserve bank has made a decision of hiking the interest rate from 11% to 12%. It was puzzling to many financial and monetary observers because it was less than three months that CBN reduced the interest rate from 13% to 11%. Then it appeared that the monetary policy was gearing towards enhancement of liquidity, but the latest u-turn has thrown cold water to the pursuit of liquidity. The reversal by CBN was triggered by the rising inflation and the logical step at its disposal was to restrict and constraint monetary policy.…
