The Central Bank of Liberia (CBL) has reduced its Monetary Policy Rate (MPR) from 18.5 per cent to 17 per cent following a meeting of the Monetary Policy Committee (MPC) on October 16, 2024. The decision aims to support economic stability and manage inflation as Liberia moves into the last quarter of the year.
The CBL Acting Deputy Executive Governor for Operations, James Wilfred, said the global economy has demonstrated resilience despite challenges such as the ongoing Russia-Ukraine war and the Israel-Hamas conflict. Wilfred noted that the economy achieved 3.3 per cent GDP growth in 2023, with a slight decrease to 3.2 per cent expected in 2024 due to tight monetary policies.
Liberia’s economy showed improvement in the third quarter of 2024, with a 1.3 per cent growth in Quarterly Real GDP, which reversed the previous quarter’s contraction. Inflation also eased from 7.4 per cent in the second quarter to 6.8 per cent in the third quarter and is projected to drop to 6.4 per cent by the end of the year.
However, concerns remain about the banking sector, with increases in non-performing loans and declines in total assets, deposits, and capital. Liberia’s fiscal operations recorded a deficit due to a decline in revenue collection, though the trade deficit improved, while the exchange rate remained stable at L$193.26 per US$1.
The CBL expects inflation to moderate further and the exchange rate to remain stable in the coming months.
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