- Decision
- Maintain
- Rate change
- 0 bps
- monetary policy rate
- 17%
The Monetary Policy Committee of the Central Bank of The Gambia on 12 June 2025 left its Monetary Policy Rate unchanged at 17 percent, judging that a “cautious and well-calibrated” stance remains appropriate as headline inflation, though down to 8.1 percent in April from 9.1 percent in March on better food supply and lower commodity prices, is still above the 5 percent medium-term target while growth momentum is solid and risks from global uncertainties persist. Having kept the benchmark rate at 17 percent since at least February 2025, the Committee also retained the 13 percent required-reserve ratio, the 4 percent standing deposit rate and the standing lending facility rate at 18 percent (MPR + 100 bp), and noted a stable interbank market where the weighted-average rate eased to 5.3 percent in Q1. Real GDP expanded 5.3 percent in 2024 and is projected to accelerate to 6.5 percent in 2025, supported by services, industry and stronger tourism, while NPLs fell to 13.5 percent and banks’ capital adequacy remained high at 28.4 percent. The current-account deficit narrowed to 0.6 percent of GDP in Q1 on higher tourism receipts and remittances, the dalasi slipped 1.7 percent against the USD over January–March, and reserves stood at USD 508.5 mn (4.6 months of import cover) at end-May. The Committee cited a slower, uneven global recovery, persistent core inflation and volatile commodity prices as external headwinds, and pledged to keep monitoring domestic and international conditions when determining future policy actions.
Rate evolution
Over the period, the Central Bank of The Gambia lowered the Monetary Policy Rate by 300 basis points from 17 percent to 14 percent, moving from an extended hold to two cuts and then two consecutive holds. The initial 17 percent stance reflected easing but still above-target inflation, persistent core pressures, solid domestic growth, and high uncertainty from trade fragmentation, commodity volatility, climate-related shocks and geopolitical tensions, with risks to inflation judged tilted to the upside. As headline, food and core inflation moderated and imported inflation pressures eased on subdued global commodity prices, while the dalasi stayed broadly stable and reserves, remittances and tourism inflows improved, the MPC cut in December 2025 and again in February 2026 to support lending, investment and growth while keeping price stability and inflation expectations anchored.
The Committee held the policy rate at 14 percent in May 2026 after Middle East-related energy and transport shocks lifted headline, food, non-food and core inflation, the growth forecast was revised down, and geopolitical spillovers and election-related uncertainty clouded the outlook. It maintained the rate in August as headline and underlying inflation moderated but remained elevated, non-food inflation rose on persistent transport costs, domestic growth strengthened and external uncertainty persisted, leaving inflation risks tilted to the upside and warranting a cautious stance.