What Happened
Nigeria dropped to third place in the September 2026 ranking after the Central Bank of Nigeria (CBN) slashed its Monetary Policy Rate (MPR) by 350 basis points, from 26.50% to 23.00%. The move pushed Nigeria below Zimbabwe (27.75%) and Malawi (24.00%). This 350‑bp cut is the biggest reduction Nigeria’s benchmark rate has seen since December 2006, when the CBN trimmed 400 bps from 14% to 10%.
Other key changes: Angola’s central bank cut its key rate by 100 bps to 14.75% on 15 Sept, while Ethiopia’s National Bank raised its policy rate by 100 bps to 16% in July. Ghana and the Gambia kept their rates steady at 14%, and several other African economies remained in the top‑10 list.
Why It Happened
Nigeria’s cut reflects a sharp easing of inflation and a need to support growth. With headline inflation hovering around 8% and real GDP growth near 4%, the CBN aimed to prevent a slowdown while keeping currency stability.
Ghana’s 14% rate was maintained after inflation rose to 5.0% in August, but the economy grew 6.0% in Q2. The Gambia held its rate at 14% to keep its currency on track, keeping the required reserve ratio at 13% and the standing lending facility at 15%.
Angola’s 100‑bp cut came after inflation eased and the economy needed a boost. Ethiopia’s hike was a first formal revision since July 2024, signaling a shift to curb rising prices after a period of high inflation.
What To Watch Next
Keep an eye on the upcoming MPC meetings in Nigeria and Ghana, as they may adjust rates further to balance inflation and growth. Ethiopia’s central bank could reverse the hike if inflation spikes. Angola might consider another cut if the economic outlook stays weak.
Regional monetary policy trends will also influence exchange rates and cross‑border capital flows, especially in the top‑ranked economies. Investors should monitor the Central Bank of Zimbabwe’s next decision, as it currently holds the highest rate.
Final Gist
September 2026’s top‑10 African interest rates show a mix of aggressive cuts and steady holds. Nigeria’s big 350‑bp cut moved it down the list, while Zimbabwe and Malawi remain at the top. Ghana and the Gambia maintain 14%, Angola nudged below them, and Ethiopia’s hike signals a new policy direction. The coming months will reveal whether these central banks continue to tweak rates to tame inflation and support growth in a rapidly changing economic landscape.
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