Friday, October 28, 2011

Central Bank of The Gambia Cut Rate 100bps to 14.00%

The Central Bank of The Gambia reduced its rediscount rate by 100 basis points to 14.00% from 15.00% previously, and left the reserve requirement ratio unchanged at 12%.  The Bank said: "Owing to strong growth in the emerging economies, commodity prices remain at elevated levels.  This coupled with persistent excess demand in the major emerging market economies are contributing to broader global inflationary pressures."  Also noting the Gambian "economy is expected to benefit from increased value – added of agriculture and tourism."

Gambia reported headline inflation of 4.1% in September 2011, compared to 6.2% in September 2010.  The Bank said inflation is projected to be within the target of 6.0 percent for the remainder of the year, given a decline in global food and energy prices, domestic supply response, and prudent monetary policy, but with upside risks.  The Gambian economy is projected to grow at a pace of 5.5% in 2011, compared to 6.1% in 2010.  The Gambia's currency, the Gambian Dalasi (GMD), last traded around 30.55 against the US dollar.


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