The Bank of Central African States published its June 2026 monetary policy report for the Central African Economic and Monetary Community, setting out an easing package for the third quarter of 2026. The Monetary Policy Committee cut the auction interest rate to 4.50% from 4.75%, lowered the marginal lending facility rate to 5.75% from 6.25%, and reduced reserve requirement ratios to 6.50% on demand liabilities and 4.00% on term liabilities, while keeping the deposit facility rate unchanged at 0.00%. The report links the move to inflation staying below the 3% community ceiling, a medium-term outlook that points to stronger external reserves, and financing costs that remain high despite only moderate regional growth. The report shows CEMAC inflation falling to 1.4% in average annual terms in March 2026 from 4.0% a year earlier, with year-on-year inflation at 1.0%. Foreign exchange reserves stood at XAF 7,248 billion at end-April 2026, down 1.6% year on year, although the updated 2026 baseline projects a 25.0% rise to XAF 7,962.3 billion by Dec. 31, equivalent to 4.72 months of imports and an external currency cover ratio of 70.7%. For 2026, the Bank of Central African States forecasts regional growth of 3.2% after 3.4% in 2025, inflation of 2.4%, a fiscal deficit excluding grants of 1.9% of GDP, and a current account deficit including official grants of 2.9% of GDP. The report also notes that bank lending costs increased in the first quarter and that interbank market activity strengthened between February and May 2026. The new policy settings take effect from July 1, 2026. The report adds that the central bank remains ready to adjust its stance if external developments materially alter the macroeconomic outlook.
Banking Commission of the Central African Republic2026-07-02
Bank of Central African States cuts main policy rate to 4.50% and lowers reserve requirements
The Bank of Central African States used its June 2026 monetary policy report to announce lower policy rates and reserve requirements for the third quarter of 2026. It cut the main policy rate to 4.50%, the marginal lending facility to 5.75%, and reserve requirements by 50 basis points, while keeping the deposit facility at 0.00%. The report says inflation remains below the 3% ceiling and projects 2026 reserves to rise to XAF 7,962.3 billion even as regional growth slows to 3.2%.