Africa-Press – Gambia. The Governor of the Central Bank of The Gambia, Mr. BuahSaidy, has said that the inflation rate in The Gambia will continue to fall towards the 5% medium-term target if there are no further surprises, especially on international commodity prices.
The Gambia’s inflation rate currently stands at 11% and despite the optimistic assessment of the country’s inflationary trend, the Monetary Policy Committee of the CBG recognizes the significant risks surrounding the outlook which, according to Governor Saidy, calls for prudent policy calibration to sustain the declining inflation.
“As the global economic environment continues to be fluid, the importance of policy coordination to safeguard gains in the fight against inflation and sustain macroeconomic stability going forward is crucial,” he stressed.
” In view of the above, the committee concludes that monetary policy should stay the course to ensure inflation returns to its desired target,” he stated before outlining the MPC’s policy decisions for sustaining the gains so far made in taming inflation.
The MPC made the policy decision that the Monetary Policy Rate (MPR) will be maintained at 17.0%. It also decided that the Required Reserve (RR) ratio of commercial banks would be maintained at 13.0% while it also made the policy decision to maintain the interest rate on the standing deposit facility at 3.0%.
“The interest rate on the standing lending facility will remain at 18.0% or MPR plus 1.0 percentage points. The committee will continue to observe vigilance and stand ready to act should the need arise,” the CBG governor stated.
The MPC of the CBG convened on May 22 and 23,2024 to review current domestic and global economic conditions and trends.
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