The Central Bank of Nigeria (CBN) is positive about its policies and reforms.
These reforms the bank believes have eased the surge in prices of goods and will yield more in time to come.
Expressing positivity, the Central Bank of Nigeria (CBN), stated that its monetary policy initiatives are yielding the desired results.
The CBN made this known while addressing issues around the latest National Bureau of Statistics (NBS) figures.
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The Director of the Corporate Communications Department at CBN, Isa AbdulMumin said the low increase in price in October shows that the CBN is getting it right.
Reforms Are Yielding The Right Result
Isa 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.
According to him aggressive monetary tightening using various liquidity mechanisms had raised Open Buy Back (OBB) rates from less than one percent in August to their expected levels around the monetary policy rate.
He said that such mechanisms included removing the cap on the Standing Deposit Facility (SDF) and Open Market Operations.
CBN Heading In Right Direction
He acknowledged the 0.61% increase in the headline inflation rate from 26.72% in September to 27.33% in October.
He, however, assured that despite the increase, the CBN was headed in the desired direction in terms 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.
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“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.
