The Central Bank of West African States (Bceao) has raised, for the third time this year, its key rates. From 2.50%, the rate at which the Bceao lends its resources to banks passes to 2.75%. This decision should gradually bring inflation back to the Central Bank’s target range of 1% to 3%.The key rates of the Central Bank of West African States (Bceao) will be raised by 25 basis points from December 16.Thus, the main key rate at which the Central Bank lends its resources to banks goes from 2.50% to 2.75%.This increase, the third this year, is part of the gradual normalisation of monetary policy initiated since June 2022.It should help to gradually bring inflation back to the Central Bank’s target range of 1% to 3% over the medium term.This is the main information from the Bceao Monetary Policy Committee (Cpm) which met this week.“It is about the continuation of the normalisation of monetary policy.This dynamic has been triggered since June 2022.This decision is due to the evolution of inflation.The Bceao is in a dynamic to lower inflation, which has internal and external factors.The rise in international prices and the drop of between 13 and 15% in cereal production are the two factors.All this combined with the effects of insecurity and transport difficulties have caused an increase in inflation.And it is to limit the impact of this demand on inflation that the Bceao has decided on its orientation to increase its key rate.This will curb demand and ensure that we will not have a price increase,” explained Jean-Claude KassiBrou, Bceao governor.Who also affirmed that the growth rate in WAEMU is estimated at 5.6% and credit to the economy is up by 16.4%.The inflation rate in the Union, which has been on the rise for several months, reached 8.4% in October 2022.This development, according to the Bceao, is mainly due to the increase in the cost of consumer food products and transport, with the adjustment of the prices of petroleum products at the pump by the countries of the Union following the surge in oil prices on the international markets.For its part, underlying inflation, which measures the change in the general level of prices excluding fresh products and energy, also remained at a high level of 5.4% in October 2022.In addition, bank liquidity in the Union remains adequate and loans granted to the economy by the banking sector increased by 16.5% at the end of October 2022.Over the coming months, the Monetary Policy Committee of the Bceaowill take appropriate measures, if necessary, to ensure monetary stability.
By Malick GAYE / mgaye@lequotidien.sn

  • Translation by Ndey T. SOSSEH