The Monetary Policy Committee of the Central Bank of The Gambia held the Monetary Policy Rate (MPR) at 14%, citing stronger domestic activity and moderating headline inflation alongside elevated underlying and non-food price pressures and persistent external uncertainty. Over the past year, the MPC held the MPR at 17% in September 2025, cut it by 100 basis points to 16% in December and by 200 basis points to 14% in February 2026, then held it in May. The MPC maintained the required reserve ratio at 13%, the standing deposit facility rate at 5% and the standing lending facility rate at 15%. Headline inflation eased to 7.0% in July but remained above the central bank’s implicit 5.0% target, while real GDP growth is projected at 5.8% in 2026 and the banking sector remained stable with adequate capital and liquidity buffers. The current account deficit widened in the second quarter, although the dalasi remained broadly stable and gross official reserves stood at USD 563.9 million at end-July, covering 4.3 months of prospective imports. Globally, geopolitical tensions, supply disruptions and elevated energy and food prices have stalled disinflation and created upside risks for commodity-importing economies. The MPC remains committed to returning inflation to target over the medium term and stands ready to act if conditions warrant.
2026-08-20Central Bank of the Gambia
Central Bank of The Gambia Holds Policy Rate at 14%
The Central Bank of The Gambia held the Monetary Policy Rate at 14%, the required reserve ratio at 13%, the standing deposit facility rate at 5% and the standing lending facility rate at 15%. Headline inflation eased to 7.0% in July but remained above the 5.0% target, amid persistent underlying price pressures and external uncertainty.