In a chat with journalists in Abuja on Wednesday on the latest NBS figures, Isa AbdulMumin, spokesman of the Central Bank of Nigeria (CBN,) expressed optimism that the slower pace of increase in inflation in October compared to the previous month was a pointer to the fact that the Bank’s tight monetary policy stance and its money market reforms have already started yielding the desired effect.
Isa AbdulMumin noted that Aggressive monetary tightening using various liquidity mechanisms including removing the cap on the Standing Deposit Facility (SDF) and Open Market Operations, had raised Open Buy Back (OBB) rates from less than 1% in August to their expected levels around the monetary policy rate today.
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Despite the 0.61% increase in the headline inflation rate from 26.72% in September 2023 to 27.33% in October 2023, Isa remained optimistic that the CBN was headed toward achieving price stability.
According to him, available statistics showed that the first indication of price deceleration was recorded in September. Further reforms in the money market, which commenced in October, had accelerated easing prices as indicated by the substantial drop in month-on-month changes recorded in October.
“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,” he added.
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