CBN Begins September Policy Meeting as Inflation Slows and Foreign Reserves Improve
Nigeria’s Central Bank has commenced its September Monetary Policy Committee (MPC) meeting amid a gradual slowdown in inflation, stronger external reserves and relative stability in the foreign exchange market.
The 307th MPC meeting began on Monday, September 21, 2026, and is scheduled to conclude on Tuesday, September 22. During the two-day session, policymakers will assess prevailing economic conditions, including inflation, liquidity levels and developments in the foreign exchange market.
The meeting comes as Nigeria’s Monetary Policy Rate (MPR) remains at 26.50 per cent, following the committee’s decision to retain the benchmark rate at its July meeting.
Inflation Records Another Marginal Decline
Recent inflation figures indicate a continued, although gradual, moderation in consumer prices.
Headline inflation declined slightly to 15.39 per cent in August from 15.43 per cent recorded in July. Core inflation stood at 13.29 per cent, while the monthly inflation rate dropped significantly to 0.71 per cent from 1.57 per cent in the preceding month.
The decline in monthly inflation suggests that the pace of price increases has slowed. However, food prices and agricultural supply challenges remain important considerations for monetary policymakers.
The committee is also expected to consider movements in global oil prices and developments in international financial markets as it evaluates the country’s economic outlook.
External Reserves Strengthen as Naira Trades at ₦1,329.86/$
Nigeria’s external reserves have continued to improve, reaching $54.61 billion as of September 14, according to market data cited in the report.
Meanwhile, the naira traded at approximately ₦1,329.86 to the dollar at the official foreign exchange market on September 16.
The gap between the official and parallel-market exchange rates also narrowed to about 3.4 per cent, reflecting improved alignment between the two markets.
The rise in external reserves and the reduced exchange-rate gap indicate improved conditions in the foreign exchange market compared with earlier periods of the year.
Global Interest Rate Decisions Add to MPC Considerations
Developments in major international economies are also shaping the policy environment confronting Nigeria’s monetary authorities.
The United States Federal Reserve raised its target interest rate range by 25 basis points last week to between 3.75 and 4 per cent.
Japan’s central bank also increased its policy rate to 1.25 per cent, while Brazil moved in the opposite direction, reducing its benchmark rate to 13.75 per cent.
These differing monetary policy decisions could influence international capital flows, borrowing costs and investor appetite for emerging and frontier markets, including Nigeria.
The outcome of Nigeria’s September MPC meeting is expected on Tuesday, September 22, when the committee will announce its latest decision on the monetary policy rate.
About The Author
