CBN’s interest rate reset is the “right thing” to do — IMF’s Zeine Ould Zeidane

The International Monetary Fund (IMF) has hailed the Central Bank of Nigeria's (CBN) September interest rate cut as a "right move," stating that Nigeria has made significant progress in reducing inflation while maintaining tight monetary policy. Zeine Ould Zeidane, director of the IMF's African Department, made this assessment at a press briefing during the 2026 Annual Meetings in Thailand.

Zeidane explained that the decision to lower interest rates was appropriate given the progress made in bringing inflation down from elevated levels, but emphasized that the overall policy stance remains restrictive. He stressed that the adjustment should not be seen as a full easing of monetary policy and that the CBN's decision was justified by the progress made in tackling inflation, while highlighting the need for the monetary policy to continue to respond to economic data.

The IMF's latest regional assessment also warned that monetary tightening "may be needed" in most countries, adopting a more stringent stance than its April assessment, which referred to a "difficult balancing act." Despite the CBN's decision to cut the Monetary Policy Rate (MPR) by 350 basis points in September, bringing the benchmark rate down to 23% from 26.5%, the IMF cautioned that future monetary policy decisions will need to reflect future inflation trends and progress towards the CBN's target.