Published: October 13, 2025
MONROVIA — The Central Bank of Liberia has lowered its Monetary Policy Rate from 17.25 percent to 16.25 percent, citing improved economic fundamentals and a more stable macroeconomic outlook.
The decision, announced Friday, followed the Monetary Policy Committee’s (MPC) quarterly meeting on October 6, where policymakers reviewed global and domestic economic trends.
CBL Executive Governor and MPC Chairman Henry Saamoi said the move reflects growing confidence in Liberia’s recovery from inflationary pressures and external shocks.
“After reviewing all reports, the Committee reduced the main interest rate, called the Monetary Policy Rate (MPR), by one percentage point to 16.25 percent,” Saamoi said. “This decision shows confidence that prices are stabilizing and the economy remains strong.”
Global Conditions Improving
Saamoi said the committee’s decision was informed by better-than-expected global growth and easing inflationary trends. Citing the International Monetary Fund’s latest forecast, he noted that global growth in 2025 is projected at 3 percent, up from earlier estimates.
He warned, however, that trade tensions, geopolitical risks, and tariff disputes continue to pose challenges for emerging economies.
“Despite these risks, Liberia is benefitting from declining global food and fuel prices and higher gold prices, which have boosted export earnings,” he said.
According to the CBL, global inflation is expected to fall from 5.6 percent in 2024 to 4.2 percent in 2025, driven largely by lower oil prices, a trend Saamoi described as “good news” for Liberia’s import-dependent economy.
Domestic Growth, Inflation Decline
Liberia’s economy, Saamoi said, remains on track to expand by about 4.6 percent in 2025, supported by a stronger services sector and steady remittance inflows.
“Inflation fell sharply from 11.1 percent in the previous quarter to 6.1 percent, mainly because food inflation dropped from 15.8 percent to 5.6 percent and imported goods became slightly cheaper,” he told reporters.
Saamoi projected that inflation may rise modestly during the holiday season but should remain around 6 percent, helped by a stable exchange rate and resilient trade flows.
Banking Sector Strong, Liquidity Stable
The governor described Liberia’s banking sector as “sound and resilient,” noting that all commercial banks continue to meet capital adequacy requirements.
“Banks have sufficient capital to cover their operations, with liquidity ratios well above the minimum threshold,” he said.
Although lending activity slowed slightly, non-performing loans declined while cash reserves improved, signaling healthier balance sheets.
He said foreign reserves rose modestly during the third quarter, while both government and private-sector borrowing declined, contributing to a reduction in the total money supply.
“The government continued meeting its debt obligations and issued US$22.6 million in new treasury bonds during the quarter,” Saamoi said, commending fiscal authorities for “prudent spending and improved coordination” with the central bank.
Liberia also recorded a small trade surplus, exporting more than it imported, for the first time this year. Foreign reserves climbed to US$544.8 million, while remittance inflows increased by 8 percent and the Liberian dollar appreciated by about 9 percent.
Stakeholders Call for Reforms, Local Investment
Friday’s announcement drew a cross-section of business and community representatives, including marketers, forex bureau operators, and university students, who used the occasion to press for deeper economic reforms.
“What sustainable mechanisms are in place to protect the value of our currency?” one private sector participant asked, urging the government to emulate neighboring countries like Ghana, Guinea, and Mali, which retain more control over gold exports to build foreign reserves.
Others raised concerns about high mobile money fees charged by Lonestar Cell MTN and Orange Liberia, calling for tighter CBL regulation to protect small traders and consumers.
“There are too many unauthorized foreign exchange operators,” another stakeholder said. “They distort the market and make it harder for licensed businesses to operate fairly.”
In response, Governor Saamoi said the Bank is developing a nationwide licensing framework for forex operators to improve oversight and transparency. He also clarified that cash transfer limits on SIM cards are set by GSM companies, not the CBL.
Several participants also urged the Bank to work with commercial banks to expand agriculture-friendly credit facilities, saying access to affordable loans would help farmers boost food production and reduce dependence on imports.
CBL Reaffirms Policy Stability, Private Sector Support
Governor Saamoi reaffirmed the Bank’s commitment to price stability, private sector development, and policy coordination with fiscal authorities.
“Our focus remains clear — to ensure a stable economy that benefits all Liberians,” he said. “The Central Bank will continue to pursue policies that promote confidence, support growth, and safeguard financial stability.”
Discussion about this post