Economic activity in the member countries of the Central African Economic and Monetary Community (CEMAC) will continue to recover,” albeit at a more moderate pace than expected,” according to the Monetary Policy Committee (MPC) of the Bank of Central African States (BEAC).
By Félix Cyriaque Ebolé Bola
At the end of its ordinary session, held on Wednesday in Cameroon’s economic metropolis, Douala, this body thus forecasts a growth rate of 2.5 percent against 1.8 percent in 2018, a control of inflationary pressures below the community threshold (3 percent) with a rate of 1.9 percent, against 2.2 percent a year earlier.
This signifies a surplus in the budget balance excluding commitments, excluding grants which would rise to 0.2 percent of gross domestic product (GDP), against -1.0 percent in 2018.
On the other hand, the BEAC’s MPC forecasts a widening of the current external account deficit to about 4.4 percent of GDP, against 2.7 percent a year earlier, in the area represented by Cameroon, Congo, Gabon, Equatorial Guinea, Central African Republic and Chad.
In this context, the Central Bank decided to keep the interest rates on the tender (3.50 percent), marginal lending facility (6.00 percent) and deposit facility (0.00 percent) unchanged.
In the same vein, the issuing institution announced the abolition of the penalty rate applicable to banks, which had hitherto been 8.30 percent, for the beginning of 2020.
FCEB/te/lb/as/APA