Bloomberg News

Bank of Sierra Leone Lowers Key Rate to 20% as Inflation Slows

October 26, 2011

Oct. 26 (Bloomberg) -- Sierra Leone’s central bank lowered its benchmark lending rate by 300 basis points to 20 percent in a bid to improve liquidity amid a slowing inflation rate, the lender said.

The reverse repo rate was set at 22 percent, the rediscount rate at 24 percent and the standing facility rate at 27 percent, the Freetown-based Bank of Sierra Leone said in a statement published on its website, dated Oct. 24.

Inflation in the West African nation slowed to 15.7 percent in September from 16.4 percent a month earlier, a move “underpinned by the relative stability in the exchange rate,” the lender said.

The central bank’s announcement cut a further 100 basis points off a decision to set the key rate at 21 percent that was initially made after the Oct. 20 Monetary Policy Committee meeting, Komba Senessie, an official in the lender’s money market division, said by phone today.

--Editors: Emily Bowers, Ana Monteiro.

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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