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Bank of Sierra Leone Cuts Key Interest Rate to 18.75% to Spur Growth


The Bank of Sierra Leone (BSL) has cut its benchmark interest rate by three percentage points, lowering the cost of borrowing for businesses and individuals.

The decision, approved by the BSL Board of Directors on September 24, 2025, lowers the Monetary Policy Rate (MPR) to 18.75 percent. The move was recommended by the bank’s Monetary Policy Committee (MPC) following a meeting on September 23, chaired by Governor Dr. Ibrahim L. Stevens.

The rate reduction is aimed at stimulating private sector investment and comes amid a backdrop of declining inflation and a more stable economic environment.



“The improved domestic macroeconomic conditions are expected to cushion the effects of… global risks,” the central bank stated, justifying the policy shift.

The committee pointed to a significant drop in inflation, which fell to 5.85 percent in August 2025, as a key factor in its decision. This decline was attributed to lower global commodity prices, prudent government policies, and a relatively stable exchange rate.

Furthermore, the economy is projected to grow by 4.5 percent in 2025, driven by improvements in agriculture, services, and mining. The medium-term outlook remains positive, with growth expected to average 4.7 percent in 2026 and 2027.

Other positive indicators cited include a narrowed fiscal deficit, a surplus in the trade balance, and a decline in the government’s borrowing costs, which frees up fiscal space.

Effective September 26, 2025, the new rates are as follows:

  • Monetary Policy Rate (MPR): 18.75%
  • Standing Lending Facility Rate (SLFR): 21.75%
  • Standing Deposit Facility Rate (SDFR): 12.25%

The MPC also urged commercial banks to increase lending to the private sector and called for intensified regulatory oversight to address threats like non-performing loans and cybersecurity risks.

The committee affirmed its commitment to maintaining low inflation and financial stability, stating it will “stand ready to recommend an adjustment of the monetary policy stance should risks to the inflation outlook change.”

The next MPC meeting is scheduled for December 18, 2025.



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Bank of Sierra Leone Cuts Monetary Policy Rate Amid Declining Inflation |


The Monetary Policy Committee (MPC) of the Bank of Sierra Leone (BSL), following its quarterly meeting on July 24, 2025, has announced a significant reduction in its key policy rates, effective July 29, 2025.

The move aims to sustain macroeconomic stability, address inflationary pressures, and stimulate private sector credit.

The Monetary Policy Rate (MPR) has been reduced by 2 percentage points to 21.75%. Concurrently, the Standing Lending Facility Rate (SLFR) has been lowered to 23.75%, and the Standing Deposit Facility Rate (SDFR) to 14.25%. These adjustments were approved by the BSL’s Board of Directors on July 28, 2025.



According to the MPC, the decision was premised on several positive developments:

  • Declining Inflation: Inflationary pressures have continued to ease, with headline inflation dropping to 7.10% in June 2025, down from 7.55% in May 2025. This follows a reported 13.8% in December 2024.
  • Falling Treasury Bill Rates: There has been a further reduction in the 364-day Treasury Bill rate, falling from 20.40% on June 12, 2025, to 15.77% on July 17, 2025, attributed to ongoing fiscal consolidation efforts by the government.
  • Improved Economic Activity: Real GDP growth is projected to increase to 5.5% in 2025, a rise from 4.4% in 2024. The BSL’s Composite Index of Economic Activity (CIEA) indicates a slight slowdown in economic activity in the second quarter of 2025.
  • Private Sector Credit Growth: A slight decrease in private sector credit growth was noted, from 3.72% of GDP in March 2025 to 3.69% of GDP in May 2025.
  • Stable Exchange Rate: The Leone/US Dollar exchange rate has remained relatively stable, supported by monetary and fiscal policy coordination, leading to improved market sentiment.

Despite these positive trends, the MPC acknowledged that global economic uncertainty remains a risk.

The MPC emphasized that the balance of risks to the inflation outlook has shifted downwards. Therefore, a more consistent monetary policy stance is being adopted to align with developments in the money market, stimulate private sector credit, and enhance price stability.

The committee reiterated its commitment to maintaining price stability and will continue to recommend adjustments to the monetary policy stance before the next MPC meeting, should market conditions warrant. The next MPC meeting is scheduled for September 25, 2025.

The statement was issued by Dr. Ibrahim L. Stevens, Governor of the Bank of Sierra Leone.



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Bank of Sierra Leone Cuts Monetary Policy Rate Amid Declining Inflation


The Monetary Policy Committee (MPC) of the Bank of Sierra Leone (BSL), following its quarterly meeting on July 24, 2025, has announced a significant reduction in its key policy rates, effective July 29, 2025.

The move aims to sustain macroeconomic stability, address inflationary pressures, and stimulate private sector credit.

The Monetary Policy Rate (MPR) has been reduced by 2 percentage points to 21.75%. Concurrently, the Standing Lending Facility Rate (SLFR) has been lowered to 23.75%, and the Standing Deposit Facility Rate (SDFR) to 14.25%. These adjustments were approved by the BSL’s Board of Directors on July 28, 2025.



According to the MPC, the decision was premised on several positive developments:

  • Declining Inflation: Inflationary pressures have continued to ease, with headline inflation dropping to 7.10% in June 2025, down from 7.55% in May 2025. This follows a reported 13.8% in December 2024.
  • Falling Treasury Bill Rates: There has been a further reduction in the 364-day Treasury Bill rate, falling from 20.40% on June 12, 2025, to 15.77% on July 17, 2025, attributed to ongoing fiscal consolidation efforts by the government.
  • Improved Economic Activity: Real GDP growth is projected to increase to 5.5% in 2025, a rise from 4.4% in 2024. The BSL’s Composite Index of Economic Activity (CIEA) indicates a slight slowdown in economic activity in the second quarter of 2025.
  • Private Sector Credit Growth: A slight decrease in private sector credit growth was noted, from 3.72% of GDP in March 2025 to 3.69% of GDP in May 2025.
  • Stable Exchange Rate: The Leone/US Dollar exchange rate has remained relatively stable, supported by monetary and fiscal policy coordination, leading to improved market sentiment.

Despite these positive trends, the MPC acknowledged that global economic uncertainty remains a risk.

The MPC emphasized that the balance of risks to the inflation outlook has shifted downwards. Therefore, a more consistent monetary policy stance is being adopted to align with developments in the money market, stimulate private sector credit, and enhance price stability.

The committee reiterated its commitment to maintaining price stability and will continue to recommend adjustments to the monetary policy stance before the next MPC meeting, should market conditions warrant. The next MPC meeting is scheduled for September 25, 2025.

The statement was issued by Dr. Ibrahim L. Stevens, Governor of the Bank of Sierra Leone.



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