The Monetary Policy Committee (Cpm) of the Central Bank of West African States (Bceao) has decided to maintain the main key rate at which the Central Bank lends its resources to banks at 3.50%, as well as the interest rate on the marginal lending window at 5.50%, levels in force since December 16, 2023. The decision was taken, according to a press release following its meeting held on December 4, 2024.
This decision results, according to this note, from the analysis of economic activity, the evolution of prices and the external situation of the Union. “Economic activity remains dynamic over the coming period, supported by adequate financing of the economy. The increase in credits to the economy was 5.9% at an annual rate at the end of September 2024. For the year 2025, the economic growth of the Union is forecast at 6.3%, compared to 6.0% in 2024,” reports the Central Bank.
Regarding inflation, the Bceao informs that in the third quarter of 2024, it stood at 4.1%, due to a local supply of food products from the 2023/2024 agricultural campaign which remains generally insufficient. Thus, in October 2024, the inflation rate stood at 3.4%, remaining however above the target of 1% to 3% targeted by the Central Bank.
According to the Bank’s latest forecasts, the inflation rate is expected to stand at 3.6% in 2024, after 3.7% in 2023. “The inflation outlook is subject to upward risks in 2025. These risks concern the security situation in certain countries, the impact of unfavorable climatic conditions on agricultural production and the effects of geopolitical and commercial tensions on world prices of energy and food products,” the document reads.
Mariama DIEME
