The Monetary Policy Committee of the Central Bank of The Gambia cut the Monetary Policy Rate by 200 bp to 14 percent, judging that sustained disinflation alongside resilient output growth allows a less restrictive stance. After a 100 bp reduction in December 2025, the policy rate has fallen by a cumulative 300 bp since September. The required-reserve ratio is unchanged at 13 percent, the standing deposit rate stays at 5 percent, and the standing lending rate falls to 15 percent (MPR + 1 pp). Headline inflation eased to 6.4 percent in January 2026 from 6.6 percent in December and a 18.5 percent peak in September 2023; the central bank expects it to approach its medium-term target by end-2026. Real GDP is projected to grow 6.4 percent in 2025 and 6.2 percent in 2026, underpinned by investment, remittances and strong services activity, while money supply expanded 26.2 percent and private-sector credit 7.2 percent in 2025. Externally, the current-account deficit narrowed to 3.2 percent of GDP in 2025, the dalasi remained broadly stable, and reserves stood at USD 585.3 million, covering 4.5 months of imports. The committee noted supportive global conditions—IMF-projected world growth of 3.3 percent, lower energy prices and easing food costs—and reiterated its data-driven approach, pledging to act swiftly if the outlook shifts.
Central Bank of the Gambia 2026-02-26
Central Bank of The Gambia cuts Monetary Policy Rate by 200 bp to 14%
The Central Bank of The Gambia’s Monetary Policy Committee cut the Monetary Policy Rate by 200 bp to 14 %, extending total easing to 300 bp since September, after inflation fell to 6.4 % in January and growth remained robust. The required-reserve ratio stays at 13 %, the standing deposit rate at 5 %, and the standing lending rate declines to 15 %, with the committee reiterating a data-driven stance.