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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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Bank of Sierra Leone Reveals How Inflation Remains a Serious And Persistent Challenge


The recent monetary policy statement issued by the Bank of Sierra Leone has revealed that inflationary pressures have remained persistent since their previous MPC Meeting due to the demand and supply side factors.

The Policy statement affirmed that headline inflation edged up from 44.3 percent in May 2023 to 44.81 percent in June 2023 and increased significantly further to 50.94 – percent in August 2023.

The monetary statement further pointed out that headline inflationary pressures continue to be largely driven by both food inflation and non-food inflation.



The Monetary Policy Committee of the Bank of Sierra Leone met on 28 September 2023 in a meeting chaired by the Acting Bank Governor, Dr. Ibrahim L. Stevens. After a careful assessment of recent macroeconomic and financial developments in the global and domestic economy and the implications for domestic inflation and growth, the MPC decided to raise the Monetary Policy Rate [MPR] by 2.0 Percentage points, to 21.25.





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Sierra Leone Tops West Africa in Highest Food Price Inflation


A recent World Bank Food Security Update has ranked Sierra Leone top in the list of countries to have recorded the highest Price Inflation in West Africa.

The study covers a period of three months starting from March to June 2023.

Awoko Newspaper reported that Sierra Leone is at the apex after Nominal Food Inflation surged to a new peak of 58 percent. The West African nation surpasses its previous peak which was 56 percent.



The new data shows that Sierra Leone is at the top alongside West African neighbours, Ghana.

According to World Bank, the calculations include the use of Consumer Price Index (CPI) and the overall data of the CPI.

Experts have said that the country’s food inflation is affecting the majority of low and middle income earners.

The government acknowledged that the country is undergoing one of its worst economic shocks due to the protracted effect of the Ukraine war and other factors.

Most of the countries affected by food inflation are in Africa, Asia and Latin America. Venezuela ranked top of the list in World Nominal Food Inflation with a score of 414 while Zimbabwe leads in Real Food Inflation with a score of 80.

Sierra Leone scores 58 in Nominal Food Inflation and 13 in Real Food Inflation.





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