Monetary policy: BCEAO raises its key rates

The Monetary Policy Committee (MPC) of the Central Bank of West African States (BCEAO) met on Wednesday, June 1, by videoconference. Among the decisions taken, there is the raising of key rates.

The Monetary Policy Committee stressed that the persistent deviation of inflation from the target poses risks to the anchoring of inflation expectations in the Union, » said a statement from the institution, which was consulted by Seneweb. While considering it appropriate to maintain an accommodating monetary policy, the Committee decided to raise the key rates of the BCEAO by 25 basis points.

As a result, says the same source, « the minimum bidding rate for liquidity injection tenders increases from 2.00% to 2.25% and the marginal lending rate from 4.00% to 4.25% from June 16, 2022. The reserve requirement ratio applicable to banks in the Union remains unchanged at 3.0%.

This measure aims, the statement said, « to promote the gradual return of inflation in the target area, a prerequisite for healthy and inclusive economic growth.