Published: April 16, 2025
Monrovia – The Central Bank of Liberia (CBL), following its recent Monetary Policy Committee (MPC) meeting, has raised the Monetary Policy Rate (MPR) by 25 basis points to 17.25% for the second quarter of 2025. The MPC also maintained the reserve requirement ratios at 25% for Liberian dollar deposits and 10% for U.S. dollar deposits. The standing credit and deposit facilities corridor was retained at +2.5 and –7.5 percentage points, respectively around the MPR.
The decision reflects the MPC’s commitment to ensuring macroeconomic stability. Inflation rose to 12.8% in the first quarter of 2025, up from 8.7% in the previous quarter. Despite a slight decline in liquidity, the banking sector remained resilient, with the capital adequacy ratio rising to 31.5%, above the 10% regulatory threshold. Growth was recorded in gross assets, total deposits, and private sector credit. However, the high non-performing loans (NPLs) of 16.7 percentage points above the tolerable limit has triggered the implementation of the NPL Resolution Framework.
Broad money (M2) grew by 13.4%, driven by increases in both net domestic and foreign assets. The Liberian dollar depreciated by 7.1% against the U.S. dollar, primarily due to seasonal demand pressures. Gross international reserves increased by 10.4%, supported by CBL’s foreign exchange operations and months of import cover stood at 3.6 months at the end of the first quarter.
On the global front, the IMF projects 3.3% global economic growth in 2025, with inflation expected to moderate across advanced and emerging markets. However, risks persist due to trade tensions, geopolitical uncertainties, and global financial vulnerabilities.
The MPC reassures the public of its commitment to maintaining price stability and supporting economic growth.
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