Central Bank of the Congo Keeps Policy Rate at 25%

The Monetary Policy Committee of the Central Bank of the Congo kept the policy rate at 25% in its January 30, 2025 decision, maintaining a restrictive monetary stance as it expects strong growth and slower inflation in 2025 but sees heightened domestic and external risks, uncertainty in international goods and capital markets, and a cyclical increase in liquidity in the first quarter. The Central Bank of the Congo also left reserve requirement ratios unchanged at 12% and 0.0% on local-currency demand and term deposits, and 13% and 12% on foreign-currency demand and term deposits. The committee said macroeconomic results in 2024 were markedly better than in 2023, with growth estimated at about 6% driven mainly by the extractive sector, end-December inflation down to 11.7%, and tighter monetary policy alongside stronger coordination with fiscal policy supporting the disinflation trend. It added that the external position strengthened, helping lift international reserves, while the exchange rate stabilized relatively, particularly in the second half of 2024. The committee called for continued close monetary-fiscal coordination to support macroeconomic stability and 2025 policy objectives, including under the International Monetary Fund Extended Credit Facility-supported economic program.