The Central Bank of Liberia (CBL) has reduced its benchmark Monetary Policy Rate (MPR) by 25 basis points to 16 percent, marking a cautious shift toward supporting economic recovery while maintaining its fight against inflation.
The decision, announced Monday, July 20, 2026, in Monetary Policy Committee (MPC) Communiqué No. 27, reflects the Bank’s growing confidence that inflationary pressures are easing, with inflation projected to moderate to 4.4 percent, plus or minus two percentage points, in the third quarter of 2026.
The announcement was made during a well-attended policy briefing at the CBL headquarters in Monrovia, where officials met with representatives of commercial banks, the business community, financial institutions, development partners, academia, and the media.
Despite lowering the policy rate, the MPC emphasized that the new 16 percent MPR remains sufficiently restrictive to safeguard price stability while creating room for sustained economic growth.
In addition to the rate cut, the Committee maintained reserve requirements at 25 percent for Liberian dollar deposits and 10 percent for U.S. dollar deposits, signaling its intention to preserve liquidity discipline within the banking sector.
The MPC also adjusted the Central Bank’s interest rate corridor by narrowing the Standing Deposit Facility (SDF) from 7.5 percentage points below the policy rate to 6.5 percentage points below, while reducing the Standing Credit Facility (SCF) from 2.5 percentage points above the policy rate to one percentage point above.
According to the Bank, the corridor adjustment is intended to strengthen the transmission of monetary policy and improve the effectiveness of interest rate management across the financial system.
The latest policy decisions come as Liberia continues to navigate global economic uncertainties while seeking to sustain macroeconomic stability, strengthen investor confidence, and support private sector-led growth. Also, the CBL said the measures reflect its continued commitment to balancing inflation control with policies that encourage economic expansion and financial sector resilience.
