The Monetary Policy Committee of the Bank of Sierra Leone raised the Monetary Policy Rate by 0.25 percentage points to 17.0% effective 17 June 2026, judging that inflation risks had shifted markedly to the upside even as growth moderates, with higher global oil prices and Finance Act 2026 tax measures pushing headline inflation to 10.83% in April and external shocks weighing on activity. The Bank of Sierra Leone will implement equivalent increases in the Standing Lending Facility Rate and Standing Deposit Facility Rate. Real GDP growth is projected at 4.0% in 2026, and the Composite Index of Economic Activities pointed to weaker activity in 2026Q1. The external position improved in 2026Q1 as a lower import bill narrowed the trade deficit, while gross international reserves declined but still covered about 2.1 months of imports and the exchange rate remained broadly stable. The MPC said geopolitical tensions in the Middle East, including disruption to energy supply routes, were raising oil, food and transport costs, weakening confidence and increasing downside risks to global growth, and it said it would keep monitoring spillovers to domestic prices and output and stands ready to recommend timely action to preserve macroeconomic stability.
Bank of Sierra Leone2026-06-16
Bank of Sierra Leone Raises Monetary Policy Rate by 0.25 Percentage Points to 17.0%
The Monetary Policy Committee of the Bank of Sierra Leone raised the Monetary Policy Rate by 25 basis points to 17.0% effective 17 June 2026, with corresponding increases to the Standing Lending Facility Rate and Standing Deposit Facility Rate, citing materially higher upside inflation risks as headline inflation reached 10.83% in April amid higher global oil prices and Finance Act 2026 tax measures. The Committee said growth was moderating, with real GDP projected at 4.0% in 2026 and 2026Q1 activity weakening, and it will keep monitoring spillovers from external shocks including Middle East tensions and stands ready to act to preserve macroeconomic stability.