Bloomberg News

Sierra Leone Holds Monetary Policy Rate as Inflation Climbs

June 23, 2011

(Updates with comment from statement in third paragraph.)

June 23 (Bloomberg) -- Sierra Leone’s central bank left its monetary policy rate unchanged at 23 percent as it attempts to curb inflation that accelerated to 15.4 percent in April.

The standing facility rate was increased to 30 percent from 28 percent, while the reverse repo rate was set at 25 percent and the rediscount rate at 27 percent, the Freetown-based Bank of Sierra Leone said in a statement published on its website today.

“The underlying challenges remain containing the increase in consumer price inflation recently driven by food and fuel price increases,” the bank said in the statement. Uncertainty in food and fuel prices, along with “recent improvements in the fiscal position underscore the need to maintain a neutral monetary policy stance.”

The economy of Sierra Leone is expected to expand by 5.5 percent of gross domestic product this year, faster than 2010, said Finance Minister Samura Kamara in Freetown today. Domestic revenue is projected to increase to 13.6 percent of GDP this year from 13.3 percent in 2010, he said.

--Editors: Emily Bowers, John Simpson.

To contact the reporter on this story: Silas Gbandia in Freetown via Accra at ebowers1@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.


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