By: Cecilia E L Mendy
The Monetary Policy Committee (MPC) of the Central Bank of The Gambia (CBG) met on September 1, 2025, and decided to maintain the monetary policy rate (MPR) at 17 percent. This decision was made after a comprehensive review of both global and domestic economic conditions.
CBG Governor Buah Saidy detailed the factors that influenced the committee’s decision during a Monetary Policy Committee press briefing held at the CBG Headaquarters in Banjul on Tuesday.
Delivering the MPC report, the CBG Governor Buah Saidy noted that the International Monetary Fund (IMF) has revised its global growth forecast upward, projecting a 3.0 percent growth for 2025 and 3.1 percent for 2026. This optimistic outlook is a result of stronger-than-expected economic performance in the first half of the year, supported by proactive trade activities.
Saidy also highlighted a general trend of decreasing global price pressures, with headline inflation projected to fall to 4.2 percent in 2025 and 3.6 percent in 2026. While advanced economies are working to meet their central bank targets, he acknowledged that inflation remains a challenge for most developing countries.
The Governor disclosed that in sub-Saharan Africa, inflation is expected to gradually ease to 7.5 percent in 2025 and 6.8 percent in 2026. Although this is higher than the global average, it reflects a steady path toward disinflation.
Saidy also discussed the volatility of global commodity prices, which are influenced by trade frictions and climate disruptions. While energy prices are softening, the prices of food and raw materials have remained high.
Domestically, the Gambian economy has maintained strong momentum, with a 5.3 percent growth rate recorded in 2024.
This growth was driven by gains in the financial services, trade, construction, and mining sectors, he noted.
However, the Central Bank’s latest business sentiment survey indicated increased confidence among respondents. The majority of firms surveyed anticipate a gradual improvement in economic activity over the next quarter.