The Bank of Cabo Verde (BCV) held its policy rate at 2.50% in September, judging the current stance appropriate amid rising global inflation pressures and resilient domestic activity. It also maintained the standing lending and deposit facility rates at 2.75% and 2.25%, respectively, and the minimum reserve requirement at 12%. Economic indicators pointed to second-quarter growth supported by stronger domestic demand, while annual inflation rose 0.8% in August and average annual inflation declined to 1.3%. Despite weaker external tourism demand and higher imports, net international reserves remained comfortable at about nine months of projected 2026 imports. The global backdrop was marked by escalating Middle East tensions, higher energy prices and elevated euro-area and US inflation. The BCV said it would remain prudent and data-driven, intervening if necessary to safeguard price stability, financial-system soundness and the exchange-rate regime.
2026-09-18Bank of Cape Verde
Bank of Cabo Verde Holds Policy Rate at 2.50%
The Bank of Cape Verde (BCV) held its policy rate at 2.50%, standing lending and deposit facility rates at 2.75% and 2.25%, and minimum reserve requirement at 12%, citing resilient domestic activity and rising global inflation pressures. BCV will remain prudent and data-driven to safeguard price stability, financial-system soundness and the exchange-rate regime.