Thursday, June 2, 2011

Central Bank of West African States Holds Rate at 4.25%

The Central Bank of West African States (BCEAO) decided to hold interest rates unchanged again.  The Bank held the marginal lending facility rate unchanged at 4.25%, and the minimum open market rate at 3.25% while also holding the bank reserve requirement ratio unchanged at 7%.  The Central Bank presides over the monetary policy of the West African Monetary Union which comprises Benin, Burkina Faso, Cote d'Ivoire, Guinea Bissau, Mali, Niger, Senegal, Togo.

The BCEAO last held its interest rate unchanged in March this year.  The West African Monetary Union saw annual consumer price inflation rise to 3.9% in March, from 3.7% in February this year.  The central bank said of inflation that "In the medium term, the projections for inflation are in line with the goal of price stability in the union,".


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