Sierra Leone Telegraph: 5 August 2025:
The Monetary Policy Committee (MPC) of the Bank of Sierra Leone (BSL) last week Monday, 28th July 2025, announced a two percent reduction in the Monetary Policy Rate (MPR) to 21.75%, alongside cuts to the Standing Lending Facility Rate (SLFR) to 14.75% and the Standing Deposit Facility Rate (SDFR) to 14.25%. (Photo above: Central Bank Governor – Dr. Ibrahim L. Stevens).
This crucial decision comes a day before the country’s parliament approved the government’s 2025 Supplementary Budget, following an emergency meeting on 24th July of the Bank’s Board of Directors reviewing the evolving economic conditions facing the country.
Opposition parties and critics of the government have described the government’s Supplementary Budget as an austerity budget that will have dire consequences for the economy and public services.
The rate cuts come as inflationary pressures ease, with headline inflation dropping to 7.10% in June 2025 from 7.55% in May.
The MPC also noted a decline in the 364-day Treasury Bill rate from 20.40% in mid-June to 15.17% by July 17, reflecting successful fiscal consolidation efforts.
Despite a slight slowdown in economic activity and a marginal decline in private sector credit, the stable Leone/US Dollar exchange rate and improved market sentiment supported the Bank’s decision to loosen monetary policy.
Central Bank Governor – Dr. Ibrahim L. Stevens emphasized the Bank’s commitment to price stability while fostering private sector credit and investment.
The new rates took effect immediately, and the MPC said it will will continue to monitor market conditions, with the next meeting scheduled for September 25, 2025.
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