2023-10-03 07:37:36
The September 2023 monetary policy report from the Central Bank of West African States indicates that the inflation rate would stand at 4.4% in 2023, then at 3.0% in 2024. against 7.4% in 2022.
Abdul Wahab ADO
In the West African Economic and Monetary Union (UEMOA), the inflation rate will be 3%. Which will be consistent with the convergence criterion depending on the perspectives. The latest BCEAO forecasts indicate a deceleration in the general price level over the coming period. This trend would be due to the downward trend in world prices of food and oil products, as well as the expected increase in local food production for the 2023/2024 campaign. As an annual average, the inflation rate would stand at 4.4% in 2023, then 3.0% in 2024, compared to 7.4% in 2022. The BCEAO’s September 2023 monetary policy report indicates that in view of developments in the Union, the Committee noted the need to intervene in order to anticipate and contain the impact of these risk factors on the macroeconomic prospects of the Union. Thus, the Monetary Policy Committee decided to raise the BCEAO key rates by 25 basis points. The minimum bid interest rate for liquidity injection tenders increases from 3% to 3.25% and the marginal lending window interest rate from 5% to 5.25%. This decision takes effect from September 16, 2023. The required reserve coefficient applicable to Union banks remains unchanged at 3%. Over the coming months, the Monetary Policy Committee, analyzing the evolution of the risks surrounding the macroeconomic outlook, will take, if necessary, appropriate measures to ensure the monetary stability of the zone.
The Monetary Policy Committee (CPM) of the Central Bank of West African States (BCEAO) held, on September 6, 2023, its third ordinary meeting for the year 2023, in the premises of the Headquarters of the BCEAO in Dakar, in the Republic of Senegal, under the presidency of Mr. Jean-Claude Kassi BROU, Governor of the Central Bank, its statutory President. The report mentioned that the Committee noted, however, that these forecasts are surrounded by generally upward risks linked to increasing uncertainties about the socio-political and security situation in the Union, unfavorable climatic conditions and developments in the rising prices of food products on international markets.
QA October 3,
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