- The Central Bank of the Congo (BCC) has decided to keep its key rate unchanged at 25% and maintain reserve requirements, despite a decline in inflation.
- The BCC’s decision follows strong economic growth in 2023 and a positive outlook for 2024, with projected growth around 5% and improved fiscal conditions.
On May 31, 2024, the Central Bank of the Congo (BCC) held its latest monetary policy committee (MPC) meeting under the leadership of Governor Malangu Kabedi Mbuyi. The meeting concluded with a decision to maintain the current key rate and reserve requirements, reflecting a cautious yet optimistic approach to recent economic developments.
Monetary policy update
During the MPC meeting on May 31, 2024, the Central Bank of the Congo decided to keep the key interest rate unchanged at 25%. The reserve requirements for Congolese franc deposits remain at 10% for sight deposits and 0% for term deposits, while foreign currency deposits will continue to have reserve ratios of 13% and 12% for sight and time deposits, respectively. The decision comes amid a notable decline in inflation, which fell to 5.9% in May 2024 from 7.6% a year earlier. Despite these improvements, the MPC stressed the necessity of maintaining a restrictive monetary policy stance due to ongoing economic pressures and uncertainties.
“Despite the encouraging trend in inflation and positive economic growth, we believe that maintaining our current monetary policy stance is essential to ensure continued stability and to manage the risks that persist in our economic environment.”
Governor Malangu Kabedi Mbuyi
About the Central Bank of the Congo
The Central Bank of the Congo (BCC) plays a crucial role in managing the country’s monetary policy and financial stability. As the primary institution responsible for regulating the money supply, setting interest rates, and overseeing financial institutions, the BCC aims to foster economic stability and growth. Under the leadership of Governor Malangu Kabedi Mbuyi, the BCC has focused on stabilising inflation and addressing fiscal and external economic pressures. The bank’s proactive measures and policies are designed to support economic development while ensuring price and exchange rate stability.
