CBN says monetary reforms yielding results

The Central Bank of Nigeria (CBN) said that its monetary policy reforms are beginning to have positive effects on the country’s economy.

Reacting to the just-released inflation rate for October in a statement issued by the Director of the Corporate Communications Department, CBN Isa AbdulMumin, the apex bank vowed to return to evidence-based monetary policy status to restore stakeholders’ confidence in Nigeria’s financial system.

In October the CBN Governor, Dr Yemi Cardoso, said there was an urgent need for “discontinuation of unorthodox monetary policies and foreign currency management and unorthodox use of ways and means spending”.

Cardoso added: “The economic policy proposals of the administration identify a set of fiscal reforms and growth targets that will achieve $1trn GDP within eight years.”

According to data released by National Bureau of Statistics figures on Wednesday, inflation accelerated to 27.33 per cent in October, a slight increase from September’s 26.72 per cent.

The apex bank emphasised that the current inflation rate underscored the gradual influence of the CBN’s money market reforms on the economy.

He pointed out that the marginal rise in the average price level for October indicated the effectiveness of the CBN’s monetary policy stance and money market reforms in achieving the desired results.