The Monetary Policy Committee (MPC) of the Bank of Sierra Leone (BSL), chaired by Governor Dr. Ibrahim L. Stevens, has announced an increase in the Monetary Policy Rate (MPR) by 0.50 percentage points to 24.75%.
This decision, approved by the BSL Board of Directors, was made during their 543rd meeting on September 30, 2024,
The MPC noted that inflationary pressures have eased over the past ten months, with headline inflation dropping from 54.59% in October 2023 to 25.49% in August 2024. The reduction is attributed to a combination of factors, including tight monetary policies, stable exchange rates, prudent fiscal management, and declining global commodity prices.
However, the Committee also warned of potential risks, such as geopolitical tensions and supply chain disruptions, that could reverse these gains.
To maintain progress in reducing inflation and stabilizing prices, the MPC has emphasized the importance of coordinated efforts between monetary and fiscal authorities. The Committee remains optimistic that inflation will continue to decline in the medium term, but cautioned that further tightening of monetary policies may be necessary to achieve long-term price stability.
The new MPR and associated lending rates will take effect from October 1, 2024, with the next MPC meeting scheduled for December 19, 2024.
