IMF Supports CBN's Rate Cut to 23% Amid Inflation Concerns

The International Monetary Fund (IMF) endorsed the Central Bank of Nigeria's (CBN) decision to reduce its benchmark interest rate to 23 percent, stating that this move is justified by significant progress in controlling inflation. Zeine Ould Zeidane, Director of the IMF’s African Department, made these remarks during a press briefing at the IMF-World Bank Annual Meetings in Thailand.

He noted that while the CBN's adjustment in September should not be seen as a shift towards an accommodative monetary policy, the overall stance remains tight. The CBN cut the Monetary Policy Rate by 350 basis points from 26.5 percent to 23 percent, surprising market participants who anticipated the rate would remain unchanged due to inflation concerns.

Nigeria's headline inflation rate slightly decreased to 15.39 percent in August 2026 from 15.43 percent in July, marking a third consecutive month of disinflation. The IMF cautioned that further interest rate adjustments would depend on the continued moderation of inflation and the sustainability of the progress made.