IMF Backs CBN's Interest Rate Cut Amid Inflation Progress
The International Monetary Fund (IMF) has endorsed the Central Bank of Nigeria's (CBN) decision to cut interest rates in September, describing it as the right move amid significant progress in reducing inflation. Zeine Ould Zeidane, director of the IMF’s African Department, made this statement during a press briefing at the IMF-World Bank Annual Meetings 2026 in Thailand.
He noted that the reduction of the Monetary Policy Rate (MPR) by 350 basis points from 26.5% to 23% was appropriate given the decline in Nigeria’s headline inflation rate to 15.39% in August 2026. This marked a shift in the CBN's policy stance after a period of tight monetary policy aimed at controlling inflation.
However, Zeidane cautioned that this adjustment should not be seen as a full easing of monetary policy, as the overall stance remains restrictive and must continue to respond to economic data.
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