IMF Warns Central Banks Against Aggressive Rate Cuts for Price Stability

The International Monetary Fund (IMF) has cautioned central banks worldwide, including the Central Bank of Nigeria, against aggressive interest rate cuts to ensure price stability amidst varying economic growth and ongoing inflation challenges. The IMF emphasized the importance of carefully balancing support for economic growth while avoiding a resurgence of inflation.

Nigeria's strong growth outlook was highlighted, but the IMF stressed the need for disciplined fiscal and monetary policies to sustain economic momentum. Inflation in Nigeria eased to 15.15% in December 2025, down from 17.33% in November.

The IMF recommended that central banks maintain flexibility and prudence in their policies to avoid undermining hard-won gains in price stability.