The Monetary Policy Committee (MPC) of the Central Bank of West African States (BCEAO) has retained the current monetary policy stance, despite persistent risks related to the geopolitical tensions in the Middle East.
At the conclusion of its second ordinary session of 2026, chaired by the Governor of the BCEAO, Jean-Claude Kassi Brou, the Committee decided to maintain the main policy rate at which the Central Bank lends its resources to banks at 3%, as well as the marginal lending facility rate at 5%.
The reserve requirement ratio applicable to banks in the Union also remains at 3%.
“We noted a favourable development in the Union’s economic, monetary, and financial situation in the first quarter of 2026. Economic growth remains robust, and the inflation rate is expected to remain within the target range set by the Monetary Policy Committee for 2026,” Mr. Brou said.
The Governor also highlighted the improvement in the Union’s external situation, driven in particular by increased exports, the mobilisation of external resources by Member States and higher hydrocarbon exports.
However, Brou warned that risks continue to weigh on the region’s macroeconomic stability.
According to him, the worsening of the crisis in the Middle East could have negative effects on domestic prices in the Union and that it could also affect the external balance and the sustainability of Member States’ public finances,
In this context, the Committee deemed it “appropriate to maintain the current monetary policy stance,” favouring a cautious approach in the face of international uncertainties.
The Governor of the BCEAO assured that the institution remained attentive to developments and ready to take appropriate measures, if necessary, to preserve the monetary and financial stability of the Union.
“We remain attentive to developments and will take the necessary measures, if required, to ensure monetary and financial stability in our Union,” Brou added.
ARD/te/fss/gik/APA