The Bank of Sierra Leone has maintained its Monetary Policy Rate (MPR) at 16.75 percent, following a decision by its Monetary Policy Committee (MPC) announced on 31 March 2026.
The committee, chaired by Governor Dr. Ibrahim L. Stevens, also retained the Standing Lending Facility Rate (SLFR) at 20.75 percent and the Standing Deposit Facility Rate (SDFR) at 11.25 percent. The decision was approved by the Bank’s Board of Directors on 27 March 2026 after reviewing monetary and credit conditions for the fourth quarter of 2025.
During the period under review, reserve money grew by 12.77 percent, while credit to the private sector expanded significantly by 48.99 percent, surpassing the 14.55 percent target set under the International Monetary Fund Extended Credit Facility (ECF) programme.
The MPC noted that the current global environment remains volatile and uncertain, posing upward risks to domestic inflation. Governor Stevens highlighted that credit growth has been concentrated in sectors such as business services, commerce and finance, and construction. While this has supported overall economic activity, it has had limited broad-based macroeconomic impact, prompting the committee to stress the need for more diversified credit allocation, particularly to underserved sectors.
The banking sector remains stable, supported by strong capital buffers and improved asset quality. Non-performing loans have declined to below the regulatory threshold of 10 percent. However, banks continue to invest heavily in government securities, which limits the flow of credit to the private sector.
The MPC emphasized that strengthening financial intermediation is essential to better manage liquidity and mitigate risks associated with geopolitical tensions and rising fuel prices.
Recent global and domestic developments including increases in fuel pump prices and the implementation of new tax measures have added to inflationary pressures. The worsening geopolitical situation, particularly tensions involving the United States, Israel and Iran, has further intensified these challenges.
Despite these pressures, the committee noted that the domestic economy remains resilient. This resilience is supported by strong agricultural production, sustained mining activity, growth in the services sector, relative exchange rate stability, improved external sector performance, and ongoing fiscal consolidation efforts.
The MPC underscored that current inflationary pressures are largely driven by supply-side shocks. It stressed the importance of preventing these shocks from triggering second-round inflation effects.
Considering these conditions, the committee concluded that maintaining a neutral monetary policy stance is the most appropriate course of action. This approach allows policymakers to assess the evolving economic impact of global developments while anchoring inflation expectations, supporting market confidence, reducing exchange rate volatility, and preserving macroeconomic stability without unnecessarily restricting economic growth.
The Bank reaffirmed its commitment to maintaining price stability and safeguarding economic resilience. It also indicated that it stands ready to adjust its policy stance if external conditions worsen or if domestic inflation expectations become unanchored.
The next MPC meeting is scheduled for 16 June 2026, where further policy decisions will be guided by trends in domestic economic indicators, global energy prices, and ongoing geopolitical developments.