The Central Bank of Madagascar raised its policy rate by 50 basis points to 12.50%, effective August 5, to curb renewed inflation pressures, preserve financial stability and steer inflation toward its 5.0% medium-term target. It had held the rate at 12.00% from August 2025 through May 2026. Annual inflation accelerated to 8.6% in June, driven mainly by underlying inflation, while the central bank projected economic growth of 3.0% in 2026 and reported faster-than-expected money supply growth of 15.1%. The ariary appreciated against the euro and USD in the first half, while foreign-exchange reserves covered 7.0 months of imports at end-June. The Middle East conflict is disrupting supply chains and raising product prices globally. The central bank said it will closely monitor domestic and international conditions and take necessary measures to maintain macroeconomic and financial stability.
Central Bank of Madagascar2026-08-04
Central Bank of Madagascar Raises Policy Rate by 50 Basis Points to 12.50%
The Central Bank of Madagascar raised its policy rate by 50 basis points to 12.50%, effective August 5, to curb renewed inflationary pressures and steer inflation toward its 5.0% medium-term target. Annual inflation reached 8.6% in June, while money supply grew 15.1% and 2026 economic growth was projected at 3.0%.