Nigeria, March 23 -- The Central Bank of Nigeria has retained the policy rate at 11.5 per cent despite the country's three-year high inflation, a decision it said sought to ensure a balance between the need for price stability and growth.

The CBN governor, Godwin Emefiele, announced this Tuesday after the Monetary Policy Committee meeting that began Monday. The bank also retained other parameters as it did in February.

The decision was not unanimous as some members voted to increase the lending rate to check stagflationary pressure that has seen prices skyrocket across sectors in the country amidst high unemployment.

Increasing the lending rate should aim primarily at reducing money supply in the economy, a key tool in fighting inflati...