The Central Bank of West African States (BCEAO) opted to maintain its key interest rate at 3.50% during its 3rd Monetary Policy Committee meeting this week in Senegal, amid persistent inflation and regional economic challenges.
Inflation in WAEMU reached 4.1% in the second quarter of 2024, up from 2.9% in the previous quarter, driven by unfavorable agricultural conditions, supply disruptions, rising energy prices, and increased costs of imported food products.
The Central Bank projects an average inflation rate of 3.7% for 2024, with expectations for a return to the target range of 1%-3% in 2025, aided by improved agricultural output and falling global food prices.
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For the BCEAO, prudence is needed in navigating the current economic climate, aiming to balance growth support while managing inflation risks.
WAEMU’s economic growth forecast for 2024 remains strong at 5.9%, bolstered by structural reforms and resilience in key sectors such as agriculture and services.
In addition to maintaining the key rate, the BCEAO kept the marginal lending window rate at 5.50%.
