The Central Bank of Nigeria (CBN) declared that its ongoing monetary policy reforms are demonstrating positive outcomes for the country’s economy.
Isa AbdulMumin, the Director of the CBN’s Corporate Communications Department, made this statement in Abuja, specifically addressing the latest inflation rate figures released by the National Bureau of Statistics (NBS) on Wednesday.
The NBS revealed that Nigeria’s inflation rate rose to 27.33% in October, a 0.61% increase from the 26.72% recorded in September. Despite this uptick, AbdulMumin asserted that the current inflation rate indicates the gradual positive impact of the CBN’s monetary policy reforms on the economy.
According to AbdulMumin, the modest increase in the average price level in October signifies that the CBN’s monetary policy stance and money market reforms are producing the desired results. He emphasized that the apex bank’s leadership is diligently working to stabilize the naira and reduce inflation.
AbdulMumin highlighted the implementation of robust monetary tightening, leveraging various liquidity mechanisms. This strategy resulted in an increase in Open Buy Back rates from under one percent in August to expected levels aligned with the current monetary policy rate. Mechanisms included removing the cap on the Standing Deposit Facility and Open Market Operations.
Despite the slight rise in inflation, AbdulMumin assured stakeholders that the CBN is progressing towards the intended goal of achieving price stability. He noted that the first signs of deceleration in prices were recorded in September, and subsequent reforms in the money market, initiated in October, further accelerated the easing of prices.
AbdulMumin attributed the moderation in month-on-month changes in prices to the reforms in the money market and relative stability in the foreign exchange (FX) market.
The CBN remains optimistic about the positive trajectory of its monetary policy initiatives in contributing to the overall economic well-being of Nigeria.
