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Monetary policy: the BCEAO lowers its key rate to 3.25%

05/06/2025
Source : ORISHAS FINANCE
Categories: Sectors

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The governor of the Central Bank of West African States (BCEAO) Jean-Claude Kassi Brou announced after the regular monetary policy meeting that the institution decided to reduce its main key interest rate by 25 basis points, from 3.50 basis points % to 3.25%

.

The decision to lower the key rate was motivated by the downward trend in inflation observed in the first quarter of 2025. The inflation rate fell from 2.9% to 2.3%, a drop attributed to better availability of products on the markets, to a moderate increase in the prices of imported products, especially energy, and to the positive effects of the local measures implemented. The reduction in the key rate is intended to relax the conditions for financing the economy and to support economic activity in the Union. It results from the analysis of price developments, the economic situation and the external situation of the West African Economic and Monetary Union (UEMOA), as well as from the assessment of medium-term risks,

which are considered generally favourable.
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