The Bank of Cape Verde maintained its benchmark interest rate at 2.50%, alongside standing lending and deposit facility rates of 2.75% and 2.25%, respectively. It also kept the minimum reserve requirement unchanged at 12%, judging the current settings appropriate despite rising global inflationary pressures linked to Middle East tensions and higher energy prices. Domestic economic activity grew in the second quarter, supported by stronger internal demand. Annual inflation rose 0.8% in August, while average inflation continued to decline to 1.3%. Net international reserves remained sufficient to cover about nine months of projected 2026 imports despite weaker tourism demand and higher imports. The Monetary Policy Committee is scheduled to meet next on Nov. 3, 2026.
2026-09-18Bank of Cape Verde
Bank of Cape Verde holds policy rate at 2.50% and reserve requirement at 12%
The Bank of Cape Verde held its benchmark rate at 2.50%, its standing facility rates at 2.75% and 2.25%, and the minimum reserve requirement at 12%. The decision balances rising external inflation risks against domestic growth, declining average inflation and reserves covering about nine months of projected imports.