IMF Backs CBN’s Rate Reset, Insists Monetary Policy Remains Tight

The International Monetary Fund (IMF) has backed the Central Bank of Nigeria’s (CBN) decision to lower its benchmark interest rate, saying significant progress in taming inflation has created room for policy adjustment without easing the pressure on monetary conditions.
The Fund said the adjustment was appropriate, stressing that the reduction in the policy rate should not be mistaken for a shift towards an accommodative monetary policy stance. Director of the IMF’s African Department, Zeine Zeidane, stated this on Thursday at the African Department press briefing at the ongoing IMF/World Bank Annual Meetings in Bangkok, Thailand.
The CBN reduced the Monetary Policy Rate (MPR) by 350 ...