The central bank is relying on inflation now under control below community ceilings, consolidation of common foreign exchange reserves, and an overall improvement in the CEMAC's external accounts to inject new liquidity into the banking system.

The decrease in the cost of money is accompanied by a downward revision of other refinancing facilities to ease the credit crunch. The interest rate on the marginal lending facility has been reduced by 50 basis points, from 6.25% to 5.75%, while the remuneration of bank deposits remains capped at 0.00%. In parallel, the monetary authority has reduced the mandatory reserve coefficients imposed on credit institutions, freeing up room for maneuver for financing investments in the sub-region's businesses. The central bank's decision marks the end of previous restrictive policies and aims to lower the average cost of credit granted to local economic agents.

The easing of monetary policy is expected to change the refinancing conditions on the CEMAC interbank market over the next semester. The reduction in mandatory reserve requirements will help restore the overall liquidity of banks, reducing the dependence of financial institutions on the central bank's weekly injections. The effectiveness of the credit boost remains subject to the actual impact of the decrease in key rates on interest rates applied to small and medium-sized enterprises, as well as the ability of regional economies to absorb capital without fueling new pressures on the consumer price index.


Asaba

Tags: politique monétaire beac taux directeurs crédit bancaire inflation réserves de change cemac économie régionale banque centrale