Africa-Press – Liberia. The Central Bank of Liberia (CBL) on Monday released its Monetary Policy Communiqué for the first quarter of 2026, maintaining its key policy rate at 16.25% and reaffirming its commitment to macroeconomic stability, price control, and inclusive growth.
The communique, read at the CBL Ballroom on Ashmun Street, highlighted the outcomes of the Monetary Policy Committee (MPC) meeting held on January 28, 2026.Reading the Communique, Henry F. Saamoi, Governor of the CBL, reaffirmed the CBL’s role in safeguarding monetary and financial stability. “The MPC remains the cornerstone of our efforts to safeguard macroeconomic stability, ensure price stability, and promote sustainable growth in Liberia,” he said. “The decisions and guidance contained in this committee are not merely technical pronouncements. They represent our collective commitment to transparency, accountability, and sound policy management.”
The communique provided a detailed assessment of domestic and global macroeconomic developments. Internationally, the International Monetary Fund projects global growth at 3.3% for 2025, with a similar outlook for 2026. However, the MPC cited ongoing risks, including geopolitical tensions, trade frictions, fiscal sustainability challenges, and restrictive immigration policies that are impacting labor supply.
Sub-Saharan Africa’s inflation remained high at 13.3% in 2025 but is expected to ease to 10.9% in 2026. At home, Liberia’s economy outperformed expectations, with real GDP growth estimated at 5.1% in the fourth quarter of 2025, surpassing the earlier forecast of 4.6%. This was driven by stable macroeconomic conditions, sustained fiscal spending, robust private-sector activity, especially in mining, and resilient consumption.
Inflation averaged 4.4% in the fourth quarter of 2025, down from 5.9% in the previous quarter, with year-end inflation at 4%. Governor Saamoi noted that while inflation may edge slightly higher in the first quarter of 2026 due to post-festive spending and higher foreign exchange demand, it is expected to remain within the single-digit target band, averaging 4.8%.
He emphasized the importance of continued policy vigilance, stating that the focus will gradually shift towards consolidating gains and supporting stronger real-sector recovery to contribute to inclusive growth. The MPC report also highlighted a resilient banking sector. Total capital rose by 3.9%, with a capital adequacy ratio of 37.9%, well above the regulatory minimum of 10%. Liquidity ratios stood at 50.1%, exceeding the required 15%.
Non-performing loans declined from 19.7% in December 2024 to 12.58% at the end of 2025, while private sector credit expanded by 3.8%.
The communique noted that full implementation of the MPC Resolution Framework will help strengthen asset quality and support credit growth, while emphasizing continued vigilance against financial instability and the use of macroprudential measures as needed.
Broad money supply rose 17% during the quarter to L$289.2 billion, driven by growth in both net foreign and domestic assets.
Fiscal operations in the fourth quarter of 2025 supported relative stability in the Liberian dollar, with net liquidity injections contributing to a positive fiscal impulse of 3% of GDP.
The external sector performed well, recording a merchandise trade surplus of 0.2% of GDP, an increase in international reserves to US$575.5 million, and a 1.7% rise in net personal remittances.
The Liberian dollar appreciated by 0.9% at the end of the quarter and 7.8% on average, reflecting higher government spending in US dollars, rising remittance inflows, and a relatively tight monetary policy stance. While temporary depreciation pressures emerged in early 2026 due to post-festive foreign-exchange demand, the MPC expects these to be transitory and to remain within the plus-or-minus 10% convergence band.
Governor Saamoi emphasized, “The Central Bank of Liberia remains committed to ensuring that the positive outcomes of prudent monetary policy are reflected in the real economy,” calling for continued partnership to foster inclusive growth and economic resilience.
The CBL’s latest communique underscores Liberia’s gradual economic recovery, supported by disciplined monetary policy, fiscal prudence, and strengthened financial governance. With inflation under control, growth momentum intact, and banking sector stability improving, the MPC’s approach seeks to consolidate gains while fostering inclusive growth across sectors.
As Governor Saamoi noted, “Monetary policy is most effective when supported by broad collaboration and trust. We encourage all stakeholders—government, private sector, civil society, and the public at large—to engage constructively with the outcomes of this meeting.”
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