Abuja – The Central Bank of Nigeria (CBN) has declared that its monetary policy reforms are yielding positive economic impacts, despite the recent uptick in inflation rates. Isa AbdulMumin, the Director of the Corporate Communications Department at CBN, made this assertion during a statement in Abuja on Wednesday in response to the latest inflation figures released by the National Bureau of Statistics (NBS).
The NBS’s October inflation statistics revealed a headline inflation rate of 27.33%, reflecting a 0.61% increase from September. AbdulMumin acknowledged the rise but emphasized that the CBN’s monetary policy stance, coupled with money market reforms, is gradually influencing the economy. He stated, “The low increase in the average price level in October is an indication that the CBN’s monetary policy stance to tighten, as well as its money market reforms, were yielding the desired effect.”
Highlighting the CBN’s commitment to its core mandate, AbdulMumin explained that the leadership of the apex bank is actively working to stabilize the naira and reduce inflation. He noted, “Further reforms in the money market, which commenced in October, had accelerated easing in prices as indicated by the substantial drop in month-on-month changes recorded in October.”
The monetary tightening measures employed by the CBN included an increase in Open Buy Back (OBB) rates from under one percent in August to expected levels aligned with the present monetary policy rate. AbdulMumin outlined specific mechanisms such as removing the cap on the Standing Deposit Facility (SDF) and Open Market Operations. He assured, “Despite the slight rise, the CBN is moving towards the intended goal of achieving price stability.”
Quoting AbdulMumin, he stated, “Available statistics showed that the first indication of deceleration in prices was recorded in September.” He further explained, “Moderation in month-on-month changes in prices observed in the headline, food, and core components of the consumer basket followed reforms in the money market and relative stability in the FX market.”