The Central Bank of Nigeria has said its monetary policy reforms have started reflecting positively on the country’s economy.
The apex bank’s Director, Corporate Communications Department, Isa AbdulMumin, said this while speaking in Abuja on the latest inflation rate released by National Bureau of Statistics figures on Wednesday.
The bureau disclosed that the country’s inflation rate surged to 27.33 per cent in October, a 0.61 per cent point from the 26.72 per cent that was recorded in September.
But AbdulMumin said the current inflation rate released by the NBS indicated that the money market reforms by the apex bank are gradually affecting the economy.
The director added that the low increase in the average price level in October is an indication that the CBN’s monetary policy stance as well as its money market reforms were yielding the desired results.
He noted that the leadership of the apex bank is working on its core mandate to stabilise the naira as well as reduce inflation.
According to him, the implementation of vigorous monetary tightening, utilising various liquidity mechanisms, resulted in an increase in Open Buy Back rates from under one per cent in August to their expected levels in line with the present monetary policy rate.
He said such mechanisms included removing the cap on the Standing Deposit Facility and Open Market Operations.
Despite the slight rise, he assured stakeholders that the CBN is moving towards the intended goal of achieving price stability.
“Available statistics showed that the first indication of deceleration in prices was recorded in September.
“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.
“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 said.