MONROVIA-The Central Bank of Liberia (CBL) has taken another audacious step by lowering key interest rate. The move, according to the bank, is aimed at stimulating economic activity, encouraging private sector lending, and maintaining price stability amid a favorable economic outlook.
The Bank’s Monetary Policy Committee (MPC), voted Monday to reduce the Monetary Policy Rate (MPR) by 25 basis points, bringing it down from 16.25 percent to 16 percent following a meeting.
The policy adjustment reflects growing confidence in the country’s macroeconomic performance, supported by stable inflation, adequate foreign exchange reserves, and a resilient banking sector, the committee said.
The CBL said the reduction in the benchmark interest rate is expected to gradually lower borrowing costs, creating greater access to credit for businesses, particularly small and medium-sized enterprises, farmers, and market women seeking to expand their operations.
While easing the policy rate, the Monetary Policy Committee left the reserve requirement ratios unchanged at 25 percent for Liberian dollar deposits and 10 percent for U.S. dollar deposits, noting that the measure will help preserve liquidity and financial sector stability.
The Bank reported that inflation remains relatively low at 4.4 percent, a level it expects to remain within its medium-term target range. It said maintaining low inflation is essential to protecting consumers from significant increases in the prices of food, transportation, and other basic commodities.
The Committee also highlighted continued improvement in the domestic economy, revealing that Liberia recorded 5.5 percent economic growth during the second quarter of 2026. The expansion was largely driven by increased activity in the mining, agriculture, manufacturing, and services sectors.
Despite the positive economic indicators, the Central Bank cautioned that risks remain. It pointed to global geopolitical tensions, fluctuations in international commodity prices, and uncertainties surrounding external financing as potential threats that could affect the country’s economic performance in the months ahead.
The Monetary Policy Committee is scheduled to reconvene on October 8, 2026, when it will assess prevailing economic conditions and determine whether additional monetary policy measures are required to sustain growth while keeping inflation under control.
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