The Global Financial Fund (IMF) has described the Central Financial institution of Nigeria’s (CBN) September rate of interest minimize as the best transfer, announcing Nigeria has made important development in lowering inflation whilst financial coverage stays tight.
Zeine Ould Zeidane, director of the IMF’s African Division, mentioned this at a press briefing on the ongoing IMF-International Financial institution Annual Conferences 2026 in Thailand.
He mentioned the verdict to decrease rates of interest was once suitable given the development made in bringing inflation down from increased ranges.
- “What I say [on monetary policy] is that in terms of Nigeria, they’ve made important development reducing inflation. As a result of it’s been coming from massive ranges they usually had top, actual rates of interest. They usually made up our minds to normalise the financial coverage, to decrease the ones actual rates of interest, which is acceptable in our view. That is the best factor to do,” Zeidane mentioned.
He added that the adjustment will have to now not but be interpreted as a complete easing of financial coverage since the general stance stays restrictive.
IMF backs CBN’s rate of interest minimize
Zeidane mentioned the CBN’s choice to scale back rates of interest was once justified through the development made in tackling inflation, whilst stressing that financial coverage will have to proceed to answer financial information.
- “And it’s now not easing but since the stance itself stays a decent one,” he mentioned.
- “So, the qualification that the central financial institution did is the best one in our view,” Zeidane added.
- “Financial coverage has to stay information dependent, however the point of interest will have to be on ensuring that you just deliver inflation in your goal”.
The IMF’s newest regional overview additionally warned that financial tightening “is also wanted” in maximum international locations, adopting a less attackable place than its April overview, which referred to a “tough balancing act.”
The Fund’s place means that whilst Nigeria’s charge relief is seen as suitable, long run financial coverage selections will wish to replicate inflation tendencies and development against the CBN’s goal.
CBN cuts benchmark charge to 23%
On the conclusion of its 307th Financial Coverage Committee (MPC) assembly in September, the CBN reduced the Monetary Policy Rate (MPR) by 350 basis points, regardless of standard expectancies that it might depart charges unchanged.
The relief diminished the benchmark charge to 23% from 26.5%, marking a shift within the financial institution’s coverage stance following development in moderating inflation.
Along the velocity minimize, the MPC recalibrated the Status Amenities Hall whilst conserving current Money Reserve Requirement (CRR) ranges for Deposit Cash Banks, Service provider Banks and non-Treasury Unmarried Account public sector deposits.
The verdict adopted a duration of tight financial coverage aimed toward bringing inflation underneath regulate. The CBN’s newest adjustment additionally displays its overview of prevailing financial prerequisites.
Nigeria’s inflation charge continues to ease
Nigeria’s headline inflation rate declined to 15.39% in August 2026 from 15.43% in July, in line with information launched through the Nationwide Bureau of Statistics (NBS).
The marginal decline prolonged the rustic’s disinflation pattern for a 3rd consecutive month, offering context for the CBN’s choice to decrease the benchmark rate of interest.
Then again, the IMF has emphasized that financial coverage will have to stay data-dependent, with the concern being to deliver inflation against the central financial institution’s goal.