In a recent statement, Isa AbdulMumin, Director of the Corporate Communications Department at the Central Bank of Nigeria (CBN), shared the bank’s positive outlook on its monetary policy measures. Speaking in Abuja regarding the latest figures released by the National Bureau of Statistics (NBS), AbdulMumin highlighted the noteworthy results stemming from the bank’s strategies.
He emphasised that the slight rise in the average price level for October signals the effectiveness of the CBN’s tightened monetary policy and revamped money market reforms. AbdulMumin underscored the success of their aggressive monetary tightening, evident in the Open Buy Back (OBB) rates, which surged from under one per cent in August to their current alignment with the monetary policy rate.
AbdulMumin pointed out that the implemented mechanisms, such as lifting the cap on the Standing Deposit Facility (SDF) and Open Market Operations, have contributed to this positive trend. Despite acknowledging a 0.61 per cent increase in the headline inflation rate from September to October, he reassured that the CBN remains on track towards achieving price stability.
He stated, “Early data indicated a slowdown in prices in September. Further market reforms implemented in October accelerated this decline, evident in the significant reduction in month-on-month changes in October.” AbdulMumin highlighted that the moderation in price changes across consumer baskets—headline, food, and core components—was a result of money market reforms and stability in the FX market.
October’s month-on-month headline inflation rate of 1.73 per cent, indicating a 0.37 per cent decrease from September, aligns with the CBN’s efforts to maintain stability amidst economic challenges.