MPC To Hold Rates Despite Moderating Inflation, Expert Predicts

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria is likely to hold its benchmark interest rate at its meeting slated for September 21 and 22, 2026, despite three consecutive months of moderating inflation, according to CardinalStone Research. The prediction comes as the National Bureau of Statistics (NBS) reported continued moderation in headline inflation to 15.39 per cent year-on-year in August, from 15.43 per cent in July, in line with market expectations. According to the NBS, the deceleration was driven by easing in the core basket to 13.29 per cent year-on-year from 14.97 per cent previously, while the food basket also tapered to 19.57 per cent from 20.31 per cent. Month-on-month inflation moderated to 0.71 per cent in August, down from 1.57 per cent in July, largely driven by a deceleration in the food basket to 1.02 per cent compared to 5.56 per cent the prior month. CardinalStone said the 455 basis points moderation stemmed from cooling in farm produce prices.

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