FX.co ★ Nigeria Cuts Key Policy Rate to 23%

The Central Bank of Nigeria cut its key interest rate by 350 basis points to 23% at its September 2026 meeting, after leaving it unchanged in both July and May. The move is intended to strengthen monetary policy transmission and bolster economic activity amid moderating inflation and relative stability in the naira. The Monetary Policy Committee (MPC) observed that market interest rates had drifted away from the benchmark policy rate, reducing its effectiveness. Meanwhile, the annual inflation rate edged down to 15.39% in August 2026 from 15.43% in July, its lowest level since March and the third consecutive monthly decline. Still, recent fuel price increases pose an upside risk and could soon halt or reverse the disinflation trend.