2023-12-05 08:08:13
The reforms undertaken by the Monetary Policy Committee (CPM) of the Central Bank of West African States (BCEAO) are bearing fruit. These include the decision of September 6, 2023 to increase the key rates of the Central Bank by 25 basis points, as well as the main key rate at which the Central Bank lends its resources to banks which goes from 3.00% to 3.25%.
Abdul Wahab ADO
The inflation rate stood, year-on-year, at 2.1% in October 2023, down 0.6 percentage points compared to the level of 2.7% recorded in September 2023. Inflation in West African Economic and Monetary Union (UEMOA) is included in the standards of less than 3%. It is thanks to the reforms of the Monetary Policy Committee (CPM) of the Central Bank of West African States (BCEAO) that inflation is under control in the Union. The Monthly Bulletin of Statistics for October 2023 from the Central Bank of West African States (BCEAO) indicates that the inflation rate stood, year-on-year, at 2.1% in October 2023. Analysis of statistics by function shows that the deceleration of inflation is observed mainly at the level of the food products component (-0.8 percentage point). The easing is also driven by the smaller increase in the prices of the “Transport” (+5.0% versus +6.0%) and “Housing” (+3.0% versus +3.7%) components. As a reminder, in controlling inflation, the Monetary Policy Committee (CPM) of the Central Bank of West African States (BCEAO) decided, at the end of its ordinary meeting held on 6 September 2023, to raise the Central Bank’s key rates by 25 basis points, from September 16, 2023. Thus, the main key rate at which the Central Bank lends its resources to banks increases from 3.00% to 3.25 %. This decision took place in a context of rising uncertainties at the regional level, persistent inflationary pressures, rising financial conditions on international markets and reduced mobilization of external resources. The increase in key rates has therefore already made it possible to contain the impact of these risk factors on the macroeconomic prospects of the Union. It should be noted that the inflation rate, at an annual rate, which had reached 5.8% in the first quarter of 2023, fell to 4.0% in the second quarter. In July 2023, it stood at 3.4% while it was 8.4% in September 2022. The BCEAO therefore controlled the loss of purchasing power of the currency and was able to contain the general increase in prices of goods and services in the Union.
QA December 5, 2023
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