- Decision
- Maintain
- Rate change
- 0 bps
- monetary policy rate
- 14%
The Monetary Policy Committee of the Central Bank of The Gambia left the Monetary Policy Rate unchanged at 14 percent, judging that resilient economic activity and a recent rise in headline and core inflation amid higher global energy costs call for a steady stance while it works to return inflation to target. Having cut the rate by 200 bp in February 2026, the Committee again held the required-reserve ratio at 13 percent and kept the standing deposit and lending facility rates at 5 percent and 15 percent, respectively. Headline inflation picked up to 7.0 percent in April from 6.6 percent in December, with core measures climbing above 6 percent, while the Bank now projects real GDP growth to slow slightly to 5.7 percent in 2026; money supply growth accelerated to 23.2 percent and private-sector credit expanded by 35.4 percent in the first quarter. Externally, the current-account deficit widened to USD 20.8 mn (0.8 percent of GDP) in Q1 as imports surged, though the dalasi stayed broadly stable and reserves stood at USD 556.5 mn, covering 4.3 months of imports. The MPC noted that global growth is expected to ease to 3.1 percent and that elevated oil prices and geopolitical tensions have tilted inflation risks upward. It reiterated readiness to act if needed to ensure inflation converges to its medium-term objective.
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.