APA – Dakar (Senegal) – In July 2023, consumer price inflation came out at 3.4 percent, close to the central bank’s target, said the Governor of the Central Bank of West African States, Jean Claude Kassi Brou.
Inflation, a major concern in all the countries of the West African Economic and Monetary Union (UEMOA) in recent months, is continuing its downwardr path. In the second quarter of 2024, it stood at “4 percent after 5.8 percent in the previous quarter,” according to the Governor of the Central Bank of West African States (BCEAO).
Jean Claude Kassi Brou pointed out that this good momentum should continue over the course of the year, with consumer price inflation coming out at 3.4 percent in July, close to the central bank’s target.
“Inflation in the Union has continued to fall on the back of cereal production and lower prices for imported energy and food products. This trend is also being driven by action taken by governments to combat the cost of living, as well as the effects of monetary policy measures taken by the Central Bank,” he explained.
Opening the 3rd ordinary session of the Monetary Policy Committee of BCEAO in Dakar on Wednesday 6 September, Mr. Brou also indicated that economic activity remained sustained, with growth estimated at 5.7 percent in the second quarter of 2023. The good performance of activity in all sectors points to robust growth projected at 5.6 percent for 2023, after 5.2 percent in 2022,” he added.
The Governor of the apex bank also noted that in terms of financing the economy, credit granted by the banking system to the private sector and to governments is still on an upward trend.
In a context of high budget deficits leading to strong pressure on the regional financial market and on the Union’s external accounts, the resources mobilized by the States from technical and financial partners are nevertheless falling sharply, he noted.
This third ordinary session will be an opportunity to examine the report on monetary policy in UEMOA.
This report, drawn up by the Central Bank, summarizes recent developments in the international and domestic environment, as well as the outlook. It puts particular emphasis on the risks surrounding the short- and medium-term outlook for inflation, growth and the external accounts. It therefore makes proposals for monetary policy measures. Depending on the issues raised, other items of information may also be presented.
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