The International Monetary Fund (IMF) has advised the Central Bank of Nigeria (CBN) and other monetary authorities to exercise caution before implementing interest rate cuts, emphasizing the need to protect price stability amid persistent inflation and uneven global growth.
In its latest 13-page World Economic Outlook update, the IMF highlighted that while some economies are recovering modestly, inflation remains a critical challenge. The Fund urged central banks to adopt a data-driven, gradual approach, particularly in regions experiencing negative demand shocks, and to carefully weigh the risk of renewed inflation against economic stimulus efforts.
The IMF stressed that clear communication and maintaining the independence of monetary authorities are essential for sustainable growth. Nigeria’s inflation stood at 15.15% in December 2025, with the benchmark interest rate at 27%. The CBN’s next Monetary Policy Committee meeting is scheduled for February 23–24, 2026, where the central bank is expected to review its policy stance.
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