- Decision
- Maintain
- Rate change
- 0 bps
- monetary policy rate
- 17%
The Monetary Policy Committee of the Central Bank of The Gambia on 2 September 2025 left the Monetary Policy Rate at 17 percent, the required-reserve ratio at 13 percent, and the standing facility rates at 4 percent for deposits and 18 percent for lending, saying the current stance will underpin the ongoing fall in inflation, safeguard financial stability and preserve economic momentum amid heightened external risks from trade fragmentation and commodity-price volatility. The policy rate has remained at 17 percent since at least the February and June 2025 meetings. The unchanged 4–18 percent corridor and steady reserve ratio signal continued tight liquidity management. Earlier data showed headline inflation easing to 8.1 percent in April from 9.1 percent in March—still above the central bank’s 5 percent medium-term goal—while real GDP grew 5.3 percent in 2024 and is projected to accelerate to 6.5 percent in 2025; international reserves were comfortable at USD 508.5 mn (4.6 months of import cover) at end-May. The MPC also cited stable foreign-exchange market conditions supported by solid remittance inflows, even as global trade fragmentation and commodity market swings cloud the outlook. The Committee said it will continue to monitor domestic and external developments in shaping future policy decisions.
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.