Freetown, July 30, 2025 –
The Bank of Sierra Leone (BSL) has announced a significant shift in its monetary policy stance, following an emergency meeting of its Monetary Policy Committee (MPC) held on July 24, 2025.
The move comes in response to a series of encouraging macroeconomic indicators, including declining inflation and relative exchange rate stability.
In a statement released by BSL Governor, Dr. Ibrahim L. Stevens, the central bank confirmed that the Monetary Policy Rate (MPR) has been reduced by 2 percentage points to 21.75%, effective July 29, 2025. Additionally, the Standing Lending Facility Rate (SLFR) and Standing Deposit Facility Rate (SDFR) have each been cut by 3 percentage points, to 23.75% and 14.25%, respectively.
The policy changes were approved by the bank’s Board of Directors on July 28, 2025.
The MPC’s decision was driven by several key factors:
- Headline inflation continued its downward trend, falling from 7.55% in May to 7.10% in June 2025.
- Yields on 364-day Treasury Bills dropped sharply from 20.40% in June to 15.17% in mid-July, reflecting ongoing fiscal consolidation by the government.
- While real GDP growth is projected to rise to 4.5% in 2025, recent data from the BSL’s Composite Index of Economic Activity suggests a slight moderation in growth momentum.
- Private sector credit as a percentage of GDP dipped marginally from 3.72% in March to 3.69% in May 2025.
- The Leone’s exchange rate against the US dollar remained relatively stable, bolstered by coordinated monetary and fiscal measures and improved market sentiment.
- Global economic uncertainty has begun to ease, though notable risks still persist.
According to the MPC, the balance of risks to inflation has shifted to the downside, creating room for a more accommodative policy stance aimed at stimulating credit and private investment, while maintaining overall price stability.
“The Committee reaffirmed its commitment to proactive policy management and stands ready to respond with further adjustments if warranted by market developments,” said Governor Stevens.