The Bank of Sierra Leone (BSL) has raised its benchmark interest rate by 0.25 percentage points to 17.25 percent to contain persistent domestic inflationary pressures.
The decision, recommended during the Monetary Policy Committee (MPC) meeting chaired by Governor Dr. Ibrahim L. Stevens on September 24 and formally ratified by the BSL Board of Directors on September 28, reflects growing concern over accelerating consumer prices. Headline inflation expanded continuously throughout the middle of the year, rising from 10.24 percent in March to 14.77 percent in June, 14.89 percent in July, and 15.66 percent in August. Central bank officials attributed the upward trajectory to a combination of domestic tax adjustments, elevated energy costs linked to international uncertainties, and higher food prices driven by climate-related supply disruptions.
The monetary tightening comes as domestic economic expansion moderates, with real GDP growth projected at 4.0 percent for 2026, down from 4.8 percent in 2025. According to the central bank’s assessment, elevated production expenses, energy costs, and trade deficit challenges continue to constrain activity across key sectors, though gradual recovery is anticipated through the ongoing Feed Salone Initiative and strategic economic reforms.
Globally, economic activity remains impacted by persistent geopolitical tensions, trade policy uncertainties, and tighter monetary conditions, leading the International Monetary Fund to project global growth to slow to 3.0 percent in 2026. Central bank policymakers cautioned that prolonged international geopolitical tensions and potential surges in global energy markets remain major downside risks to Sierra Leone’s broader macroeconomic performance.
ABJ/APA