By: Christian.conteh@awokonewspaper.sl
The Monetary Policy Committee (MPC) of the Bank of Sierra Leone (BSL) convened on September 30, 2024, under the leadership of Governor Dr. Ibrahim L. Stevens. In its meeting, the MPC reviewed recent global and domestic macroeconomic trends, as well as developments in financial markets. After careful consideration of the risks to domestic inflation and economic growth, the committee recommended a 0.50 percentage point increase in the Monetary Policy Rate (MPR), bringing it to 24.75%. This recommendation was subsequently approved by the BSL Board of Directors during its 543rd meeting on the same day.
Global Economic Outlook
Since the beginning of 2024, global economic activity has shown resilience, bolstered by improved trade conditions, favourable financial circumstances, and a reduction in global inflation. Growth has remained robust across advanced economies, as well as emerging markets and developing countries. According to the International Monetary Fund’s (IMF) July 2024 World Economic Outlook (WEO), global real GDP growth is projected to remain steady at 3.2% in 2024, with a slight increase to 3.3% in 2025. Meanwhile, global inflation is expected to continue its downward trajectory, dropping to 5.9% in 2024 and 4.4% in 2025.
Implications for Sierra Leone’s Economy
The MPC expressed optimism about the improving global economic outlook and its potential positive effects on Sierra Leone’s domestic economy. However, the committee highlighted ongoing risks to global growth posed by geopolitical tensions, particularly the Russia-Ukraine conflict and the military crisis in the Middle East, which could disrupt economic stability worldwide.
Despite these risks, the MPC welcomed the gradual decline in global inflation, especially in advanced economies. This trend is expected to benefit Sierra Leone by reducing the cost of imported goods, potentially easing domestic inflationary pressures.
The decision to raise the MPR to 24.75% reflects the BSL’s ongoing commitment to managing inflation and maintaining economic stability in the face of both global and local challenges.
