The Bank of Sierra Leone – aka the Central Bank has announced an upward jerk in rtes viz: the Monetary policy rate (MPR) to 24.75 %, the standing Lending Facility rate (SLFR) to 27.75% and the Standing Deposit Facility Rate (SDFR) to18.25%.

Speaking through its Monetary Policy Committee, the Bank stated that the new rates becomes effective 1st October 2024.

The Committee noted that even though global economic conditions, as assessed by the World Bank and the International Monetary Fund (IMF), are improving-including global headline inflation, global political and military instability poses a serious threat to sustaining that outlook.

With respect to Sierra Leone, the Committee recognized that headline inflation has declined from 54.59% in October 2023 to 25.49% in August 2024, due mainly to the Bank’s tight monetary policy stance. However, the Committee was cautioned by the potential risks posed by global political and military instability, mainly due to the Russia-Ukraine war and the on-going conflict in the Middle East to inflation in Sierra Leone and globally.

The committee was optimistic about the potential for economic growth in Sierra Leone. They recognized that the country’s trade deficit with the rest of the world was reducing, its foreign reserve was growing and the exchange rate of its currency against other major currencies in the world was stable.

The committee concluded that thought inflation was declining it was still too high for the people of the country and therefore still adversely affects the prices of goods and services. Because of these factors, the committee recommended a continued tight monetary policy stance.