By Sallieu S. Kanu
The Bank of Sierra Leone (BSL) has increased its Monetary Policy Rate (MPR) by 0.25 percentage points to 17.25 percent as it steps up efforts to rein in rising inflation and safeguard macroeconomic stability.
The decision was reached during a meeting of the Monetary Policy Committee (MPC) chaired by BSL Governor, Dr. Ibrahim L. Stevens, on September 24, 2026, and was subsequently approved by the Bank’s Board of Directors on the same day.
The Committee said inflationary pressures remained elevated throughout 2026, with headline inflation rising from 10.24 percent in March to 15.66 percent in August. The surge was attributed to ongoing tax policy measures, higher domestic food prices linked to climate-related supply constraints, and rising global energy costs.
According to the MPC, risks to the inflation outlook remain tilted to the upside, necessitating a tighter monetary policy stance to contain second-round inflationary effects and anchor inflation expectations.
“Further tightening of the monetary policy stance was necessary to preserve macroeconomic stability and reaffirm the Bank’s commitment to achieving and maintaining price stability,” the Committee stated.
The Bank also highlighted the impact of global economic developments on Sierra Leone’s economy, noting that geopolitical tensions, trade policy uncertainties, and volatile energy markets continue to influence domestic prices through commodity costs, remittances, trade flows, and international financial conditions.
While economic activity has remained resilient, the MPC observed a moderation in growth during the review period. Real GDP growth is projected at 4.0 percent in 2026, down from 4.8 percent in 2025.
The Committee expressed confidence that ongoing government initiatives, including the Feed Salone Programme, will support gradual economic recovery, although global uncertainties continue to pose downside risks.