By: Arret Jatta
The Central Bank of The Gambia (CBG) on Thursday 23rd May, briefed the media about its review of the current domestic and economic conditions and trends with the Monetary Policy Committee (MPC).
The Governor of the Central Bank, Hon. BuahSaidy, said that after the review, the committee decided to maintain the monetary policy rate at 17 percent.
“The Committee decided to maintain the Monetary Policy Rate at 17 percent. The decision aims to sustain the declining inflation trend observed in the past 3 consecutive months,” he stated.
He added that the outlook for the global economy is showing signs of improvement.
He, however, noted that there remain significant headwinds.
“Economic growth is expected to strengthen in many countries this year, accompanied by a steady decline in inflation,” said the CBG boss.
“The International Monetary Fund (IMF) upgraded the economic growth forecast for 2024 by 0.1 percentage point compared to its January 2024
projections, while maintaining the growth forecast for 2025 unchanged. This slight upward revision reflects the continued robustness in economic activities and the easing of some supply chain constraints that had previously hampered global trade,” Governor Saidy highlighted.
The IMF, according to Governor Saidy, has forecast that global headline inflation is anticipated to decrease from an annual average of 6.8 percent in 2023 to 5.9 percent in 2024 and further to 4.5 percent in 2025.
He, however, noted that there are significant disparities in the pace of disinflation across regions.
“Advanced economies are poised to bring inflation down to their pre-pandemic levels faster than emerging markets and developing economies,” he said.
The CBG boss also reflected on the high prices of international commodities which, he said, was caused by the supply and demand mismatch.
“International commodity prices have risen in recent months, reversing the downward trend observed since the middle of last year. The increase was driven by a supply and demand mismatch, arising from concerns over geopolitical instability and adverse weather conditions. The IMF All Commodity Prices Index rose by 4.5 percent in April, from the level it was in March 2024,” he explained.