Africa-Press – Gambia. The Monetary Policy Committee (MPC) of the Central Bank of The Gambia has decided to maintain the monetary policy rate (MPR) at 17 percent following its 95th meeting, held on September 1–2, 2025.
Speaking at a press briefing after the meeting, Governor Buah Saidy said the decision was guided by both global and domestic economic developments, as well as the near-term outlook.
“The Committee decided to maintain the Monetary Policy Rate (MPR) at 17 percent. The following is an overview of deliberations that informed the committee’s decision,” Governor Saidy told reporters.
He highlighted the International Monetary Fund’s (IMF) revised global growth forecast, which now projects 3.0 percent in 2025 and 3.1 percent in 2026. The upward revision reflects stronger-than-expected performance in the first half of 2025, driven by front-loaded trade activity, improved financial conditions, and fiscal expansion in major advanced and emerging economies.
“Nonetheless, global growth remains below the pre-pandemic average of 3.7 percent,” Saidy noted.
On inflation, the governor cited IMF projections showing a global decline to 4.2 percent in 2025 and 3.6 percent in 2026. He explained that advanced economies are largely on track to meet central bank targets, but inflation pressures remain more pronounced in developing economies.
“According to IMF estimates, advanced economies are broadly on track to reach central bank targets. However, inflation dynamics remain more challenging in developing economies. Elevated energy costs, currency depreciation, and fiscal vulnerabilities continue to exert upward pressure on inflation,” he said.
For sub-Saharan Africa, inflation is projected to ease gradually to 7.5 percent in 2025 and 6.8 percent in 2026. While still above the global average, the figures reflect what he described as a “steady disinflation path.”
Saidy also emphasized that global inflation trends remain closely tied to commodity prices, which continue to be volatile due to trade tensions and climate-related disruptions.
“The global inflation trajectory is closely linked to commodity price movements, which remain volatile amid trade frictions and climate-related disruptions. Energy prices are softening, but food and raw material prices remain firm. Overall, elevated commodity,” he said.
He added that while energy prices are softening, food and raw material costs remain elevated, posing challenges for import-dependent economies. “Costs continue to strain import-dependent economies, complicating efforts to bring inflation under control. The IMF projects oil prices to average US$66.9 per barrel in 2025, a 15.5 percent year-on-year decline, reflecting weaker demand and rising supply,” he added.
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