By zainab.joaque@awokonewspapersl.com
Freetown, Sierra Leone – In a move signaling cautious optimism, Sierra Leone’s Monetary Policy Committee (MPC) has held the Monetary Policy Rate (MPR) steady at 24.75%, reinforcing its commitment to taming inflation while supporting economic growth.
The decision, announced after the MPC’s March 27 meeting chaired by Bank of Sierra Leone (BSL) Governor Ibrahim L. Stevens (PhD), marks the second consecutive hold since the rate was last raised in Q3 2024. The central bank’s board swiftly ratified the move the same day, underscoring a unified stance on price stability and financial resilience.
Sierra Leone’s headline inflation has been on a steady decline, dropping from 20.91% in September 2024 to 13.09% in February 2025—a welcome relief for consumers and businesses. The MPC credited tighter monetary policies, exchange rate stability, and weaker domestic demand for the improvement.
Yet, Governor Stevens struck a note of caution: “While we’ve made progress, global uncertainties remain a threat. We must stay alert.”
With rising geopolitical tensions and volatile commodity prices, the central bank warned that inflation could rebound if external shocks intensify.
The economy is projected to expand by 4.5% in 2025, up from 4.0% in 2024, driven by agriculture, mining, and services. Medium-term forecasts look brighter, with growth expected to hit 4.7% in 2026 and 2027.
However, the latest Composite Index of Economic Activity (CIEA) revealed a slight dip in Q4 2024, attributed to lower imports. The MPC flagged global trade tensions and commodity price swings as key risks that could disrupt recovery.
Despite stable rates, the MPC stressed the need for more aggressive lending to businesses to spur investment. Governor Stevens urged banks to shift focus from high-yield government securities—which crowd out private credit—toward productive sectors like agriculture.
“Strategic investments in agriculture are not just beneficial—they’re essential for insulating our economy from external shocks,” he emphasized.
The MPC left standing facility rates unchanged, maintaining:
- Standing Lending Facility Rate (SLFR) at 27.75%
- Standing Deposit Facility Rate (SDFR) at 18.25%
With the next meeting set for June 26, 2025, analysts will watch for signs of a potential rate cut if inflation keeps falling—or further tightening if global turbulence spills over.
For now, the BSL’s message is clear: Stability first, but readiness to pivot if risks escalate. ZIJ/2/4/2025
 has held the Monetary Policy Rate (MPR) steady at 24.75%, reinforcing its commitment to taming inflation while supporting economic growth.The decision, announced after the MPC’s March 27 meeting chaired by Bank of Sierra Leone (BSL) Governor Ibrahim L. Stevens (PhD), marks the second consecutive hold since the rate was last raised in Q3 2024. The central bank’s board swiftly ratified the move the same day, underscoring a unified stance on price stability and financial resilience.){kind=link}