RESETTING THE MONETARY POLICY
It is a proud moment of macroeconomic stability, reckons ISAH ALIYU CHIROMA In a move that has sent clear ripples across Nigeria’s financial landscape, the Central Bank of Nigeria’s Monetary
The Central Bank of Nigeria's Monetary Policy Committee (MPC) has taken a significant step in resetting the Monetary Policy Rate (MPR) to 23 percent at its 307th meeting held on September 21 and 22, 2026. This decision, aimed at reinforcing the effectiveness of monetary policy, marks a strategic operational realignment of the CBN, aiming to strengthen its policy toolkit and support Nigeria's transition towards an inflation-targeting framework.
The MPC cited positive macroeconomic indicators such as the moderation in inflation and improvement in Nigeria's external sector as the foundation for this move. Real GDP growth reached 4.43 percent in Q2 2026, with both the oil and non-oil sectors contributing to this growth. Importantly, the banking sector has strengthened following the successful recapitalisation programme.
The decision to reset the MPR also comes at a time of improved policy coordination, with a Memorandum of Understanding between the Federal Government and the CBN on fiscal-monetary coordination. The MPC remains confident that these adjustments will help buffer the domestic economy against external shocks.
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