By: Fatou Krubally
The Central Bank of The Gambia has reduced its Monetary Policy Rate (MPR) by 200 basis points to 14 percent, citing easing inflationary pressures and a resilient domestic economic outlook.
The decision was announced Thursday at a press briefing following the 97th meeting of the Monetary Policy Committee (MPC), which convened from February 25–26, 2026 to assess global and domestic economic developments.
Delivering the policy statement, the bank’s governor, Buah Saidy said the committee’s decision was informed by sustained disinflation, improving external conditions and steady economic growth prospects.
He noted that headline inflation declined to 6.4 percent in January 2026 from 6.6 percent in December 2025, significantly below the 18.5 percent peak recorded in September 2023.
According to the committee, global economic activity remains resilient despite trade disruptions and geopolitical tensions.
Projections from the International Monetary Fund indicate global growth of 3.3 percent in 2026, supported by easing financial conditions and fiscal stimulus in major economies.
Sub-Saharan Africa’s growth is also expected to strengthen to 4.6 percent.
On the domestic front, the Gambian economy is projected to grow by 6.2 percent in 2026 after expanding by 6.4 percent in 2025, driven by strong remittance inflows, recovery in tourism and improved performance in services, construction and agriculture.
The MPC highlighted an improved external position, with the current account deficit narrowing to US$75.9 million in 2025 from US$103.9 million in 2024.
Remittance inflows rose by 12.4 percent to US$872.1 million, while gross international reserves stood at US$585.3 million, equivalent to 4.5 months of import cover.
The Committee also reported stability in the foreign exchange market and continued growth in the banking sector, with industry assets rising to D128.6 billion and customer deposits increasing by 25.6 percent in 2025.
Digital financial services also expanded, with mobile money registrations reaching 5.4 million users.
Despite the positive outlook, the MPC cautioned that risks remain, including fiscal pressures, refinancing risks linked to short-term domestic debt instruments and persistent vulnerabilities in the global economy.
Alongside the rate cut, the Committee maintained the required reserve ratio at 13 percent and kept the Standing Deposit Facility rate at 5 percent, while the Standing Lending Facility was adjusted to 15 percent.
The Governor said the easing of the policy rate is expected to support access to finance and stimulate private sector activity as inflation continues to moderate.
He reaffirmed the Central Bank’s commitment to data-driven decisions, noting that the next MPC meeting is scheduled for May 2026.