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Nigerian central bank Governor Olayemi Cardoso hinted that policymakers could resume interest-rate cuts next year, provided inflation continues to cool as expected.
“Our models project continued disinflation in 2026, helped by stronger domestic production, improved foreign exchange liquidity, and more disciplined liquidity management,” he told an annual banker’s dinner in Lagos on Friday.
“As inflation moderates and becomes firmly anchored, we will calibrate the policy rates in line with evolving data.”
The central bank defied projections and held interest rates steady at 27% earlier this week to maintain downward pressure on inflation, which has slowed significantly in recent months but remains too high.
Aided by lower food costs and a stable naira, annual inflation cooled to 16.1% in October from 18% the month before and a peak above 34% in 2024 — although that progress was also helped by the rebasing of the consumer price index earlier this year.
Cardoso said the decline showed that policy was working but cautioned that the current double-digit rate “cannot be acceptable” and the central bank would not waver in the pursuit of price stability.
“Nigeria’s economy has transitioned from crisis management to laying the groundwork for a sustainable recovery,” he said. “The Central Bank of Nigeria will continue to steer monetary policy with discipline, anchored firmly to its core mandate of price stability.”
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