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.