Bank of Sierra Leone Increases Interest Rate to 24.75% to Combat Inflation

October 2, 2024

The Bank of Sierra Leone has raised its Monetary Policy Rate (MPR) by 0.50 percentage points, setting it at 24.75%. This decision was made during the 543rd meeting of the Monetary Policy Committee (MPC), led by Governor Dr. Ibrahim L. Stevens.

The committee highlighted that inflationary pressures have eased over the last ten months, with inflation decreasing from 54.59% in October 2023 to 25.49% in August 2024. The decline is attributed to various factors, including tighter monetary policies, stable exchange rates, disciplined fiscal management, and a drop in global commodity prices.

Despite this progress, the MPC cautioned that potential risks, such as geopolitical tensions and supply chain issues, could disrupt these gains. To maintain stability and further reduce inflation, the committee stressed the need for collaboration between monetary and fiscal authorities.

While optimistic about continued inflation reduction in the medium term, the MPC warned that additional monetary tightening might be required to ensure long-term price stability. The new rates will come into effect on October 1, 2024, with the next MPC meeting set for December 19, 2024.