The Central Bank of Nigeria (CBN), has expressed optimism that its monetary policy initiatives are yielding the desired results.
The bank’s Director, Corporate Communications Department, Isa AbdulMumin said this in Abuja on Wednesday, while speaking on the latest National Bureau of Statistics (NBS) figures.
The NBS has revealed that Nigeria’s headline inflation rate for October 2023 has surged to 27.33%.
The figure marks a 6.24 points increase compared to October 2022, which stood at 21.09%.
However, AbdulMumin said the low increase in the average price level in October is an indication that the CBN’s monetary policy stance to tighten, as well as its money market reforms were yielding the desired effect.
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The director said that aggressive monetary tightening using various liquidity mechanisms had raised Open Buy Back (OBB) rates from less than one per cent in August to their expected levels around the monetary policy rate presently.
He said that such mechanisms included removing the cap on the Standing Deposit Facility (SDF) and Open Market Operations.
He acknowledged the 0.61 per cent increase in headline inflation rate from 26.72 per cent in September to 27.33 per cent in October.
He, however, assured that in spite of the increase, the CBN was headed in the desired direction in terms of achieving price stability.
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“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.