A BCEAO study makes recommendations for the effectiveness of transmission mechanisms within monetary policy in the UEMOA zone. The study was conducted by Kpégo Didier Anatole Gbenou of the Directorate of Economic Studies and Regional Integration of the BCEAO.

The study, entitled "Re-examination of the effectiveness of monetary policy transmission mechanisms in WAEMU", emphasized that the strong dependence on bank loans as the main source of financing for the economy is a major problem.dependence on bank loans as the main source of financing for WAEMU economies puts credit institutions at the heart of monetary policy transmission. In this regard, the study re-examined the impact of a change in money market rates and credit to the economy on output and inflation.

According to the author, the heterogeneity of the characteristics of credit institutions influences the response of bank loans to changes in monetary policy in WAEMU. Thus, the study suggests that banks should be adequately capitalized to limit their vulnerability to a restrictive monetary policy shock.

The study suggests encouraging measures to promote inter-bank competition, given that large and medium-sized banks, with their high market share, react more slowly to monetary policy transmission. The final suggestion, according to the author, is to deepen financial inclusion strategies in the Union, so that the investment and consumption decisions of non-financial firms and households are more affected by monetary conditions.