Middle East & Africa: Macroeconomic overview
Stagflation is a problem for countries in sub-Saharan Africa and is proving an obstacle to upstream oil and gas investment.
Nigeria’s central bank raised its benchmark interest rate by 200 basis points in July, to 14%, in a bid to tackle high inflation and shore up the country’s weakening currency. Nigeria’s core inflation rate was 16.2% in June – its highest level since January 2007. However, the interest rate hike has come at a time when the country’s economy is shrinking, which will further dampen growth prospects.
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