The Monetary Policy Committee of the Central Bank of African States (Bceao) continues the year 2019 at the same pace. It has decided to keep its key rates unchanged.

This decision sanctioned its second ordinary meeting for the year 2019 which was held this Wednesday, June 12 in Dakar, in the presence of the governor of the issuing institute, Mr. Tiémoko Meyliet Koné.

Thus, this body decided to maintain the minimum interest rate for bidding on liquidity injection tender operations at 2.50% and the interest rate for the marginal lending window at 4.50%. .

As for the reserve requirement coefficient applicable to banks in the Union, the Monetary Policy Committee sets it at 3.0%.

These decisions would be taken on the basis of a review of the main developments that have marked the international and regional economic situation over the recent period, as well as the risk factors that could weigh on the medium-term outlook for inflation and economic growth of the Union.

If it noted a continuation of the moderate progress of international economic activity, despite the uncertainties linked to trade and geopolitical tensions, the CPM mentioned the forecast of the International Monetary Fund (IMF) which counts on a growth of 3 .3% in 2019, compared to 3.6% the previous year.

Economic growth projected at 6.7% for 2019 in the Union

With regard to the internal situation, the Monetary Policy Committee, in a press release read by Mr. Blehoue Toussait Damoh, Director of the Economic Situation and Monetary Analysis of the BCEAO, noted that the dynamism of economic activity has maintained in the first quarter of 2019.

According to her, the progression of the gross domestic product in real terms, supported mainly by the strength of internal demand, amounted to 6.3%, year on year, after 6.4% the previous quarter.

For the year 2019, she notes, economic growth is projected by the Central Bank at 6.7%, against an achievement of 6.5% in 2018.

With regard to public finances, continues the same source, the Committee claims to have noted with interest that the budget deficit, on a commitment basis, including grants, for all the States is projected at 2.9% of GDP this year by the official services. , after 3.7% in 2018.

To this end, this body headed by the Governor of the BCEAO, strongly encourages the States to continue their efforts in the implementation of measures to ensure compliance with the community standard of a budget deficit of 3.0% maximum at end of 2019.

The Monetary Policy Committee informs that the monetary situation of the Union at the end of March 2019 was marked by a stability of the money supply, due to a slight drop in domestic claims and a consolidation of foreign exchange reserves.

According to him, the level of these reserves ensures 4.9 months of imports of goods and services against 4.7 months at the end of December 2018.

On the money market, she continues, the average quarterly interest rate stood at 4.50% against 3.45% the previous quarter. He claims to have noted an easing of interest rates over the first two months of the second quarter of this year.

In this dynamic, he noted a deceleration in prices on an annual basis in the first quarter of 2019. According to him, the inflation rate stood at 0.1%, after 0.9% a quarter earlier, mainly in connection with the continued fall in the price of cereal products due to a “satisfactory” market supply.

At the horizon of twenty-four months, he adds, the inflation rate, year-on-year, is projected by the Central Bank at 1.3%, in line with the price stability objective pursued by the BCEAO .