IMF Backs CBN's Interest Rate Cut Amid Inflation Decline

The International Monetary Fund (IMF) has endorsed the Central Bank of Nigeria's (CBN) decision to cut the interest rate in September, describing it as a "right move." Zeine Ould Zeidane, director of the IMF’s African Department, stated this during a press briefing at the IMF-World Bank Annual Meetings 2026 in Thailand. The CBN reduced the Monetary Policy Rate (MPR) by 350 basis points, lowering it from 26.5% to 23%.

This decision followed the CBN's 307th Monetary Policy Committee (MPC) meeting and was influenced by a decline in Nigeria's headline inflation rate to 15.39% in August 2026 from 15.43% in July. While the IMF acknowledges the appropriateness of Nigeria's rate reduction, it emphasizes that monetary policy must remain data-dependent and responsive to inflation trends.

The IMF's latest assessment indicates that monetary tightening may be necessary in many countries, suggesting future policy decisions will need to reflect ongoing economic conditions.