Monrovia, Liberia — The Central Bank of Liberia (CBL) has disclosed that it has kept its key monetary policy rate unchanged at 16.25 percent, signaling a cautious approach as authorities navigate rising global uncertainties and potential inflation pressures.
The decision, taken at the Bank’s Monetary Policy Committee (MPC) meeting on April 27, comes despite a recent slowdown in inflation, which eased to 3.6 percent in the first quarter of 2026 from 4.4 percent at the end of last year.
However, the Bank warned that the relief may be short-lived, projecting inflation could rise again to around 5.3 percent in the months ahead, driven by higher fuel and food prices on the global market.
According to the CBL Governor, the decision reflects the need to maintain price stability while safeguarding the Liberian dollar and the broader financial system.
Accordingly, Liberia’s economy continues to show resilience, with growth projected at 5.1 percent in 2026, supported by mining, agriculture, manufacturing, and services.
While the banking system remains stable and well-capitalized, the report said non-performing loans stand at L$13.5 billion—an indication that some borrowers are struggling to meet repayment obligations.
The Liberian dollar also depreciated by 2.9 percent during the period, highlighting ongoing pressure on the exchange rate.
At the same time, the country’s foreign reserves rose to US$722.5 million, offering nearly three months of import cover.
The Bank linked its cautious stance to global economic developments, including geopolitical tensions and rising oil prices, which are increasing import costs and complicating inflation control efforts for countries like Liberia.
A Monrovia-based economist said the Central Bank’s decision reflects a careful balancing act.
“Holding the rate at 16.25 percent shows the Bank is prioritizing stability over aggressive growth,” the economist noted. “But for ordinary Liberians, it also means borrowing costs will likely remain high, which could slow down business expansion and access to credit.”