Monrovia, Liberia – For the first quarter of 2026, the Central Bank of Liberia (CBL) has kept its monetary policy rate at 16.25 percent, indicating confidence in containing inflation, enhancing economic expansion, and maintaining macroeconomic stability.
After a thorough analysis of domestic, regional, and international economic conditions, the decision was made at the Monetary Policy Committee (MPC) meeting on Monday, January 28, 2026, and made public on Monday, February 2, 2026.
According to the MPC, Liberia’s inflation rate continued to fall more quickly than expected in the fourth quarter of 2025, averaging 4.4 percent, down from 5.9 percent in the previous quarter, with end-period inflation recorded at 4 percent, said Central Bank Governor Henry E. Saamoi, who read the communiqué.
Despite short-term challenges associated with post-holiday spending and higher demand for foreign cash, Governor Saamoi explained that the Committee expects inflation to stay within its single-digit target band in early 2026, averaging 4.8 percent.
According to him, Liberia’s GDP is expected to rise by 5.1 percent in 2025—an increase from the previous projection of 4.6 percent. He continued, “Stable macroeconomic conditions, sustained fiscal spending, strong mining sector performance, resilient consumption demand, and increased private sector activity are attributed to the improved outlook.”
Globally, the CBL boss explained that the MPC noted that economic growth remained resilient in the fourth quarter of 2025, with the International Monetary Fund estimating global growth at 3.3 percent for both 2025 and 2026.
He stated, “The Committee warned against ongoing risks from geopolitical tensions, rising protectionism, debt vulnerabilities, and trade policy uncertainties, even though global inflation dropped to an estimated 4.1 percent in 2025 and is expected to fall further to 3.8 percent in 2026.”
Sub-Saharan Africa had the highest rate of inflation in the region throughout the reviewed period, at 13.3 percent; however, this is expected to decline to 10.9 percent in 2026. According to the CBL chief, “the MPC stressed that reducing global inflation along with falling food and fuel prices is expected to help contain domestic price pressures in Liberia.”
He stated that the banking industry continued to be liquid, stable, and well-capitalized. Liquidity ratios were 50.1 percent, much above the statutory requirement, while total capital rose by 3.9 percent.
Non-performing loans decreased dramatically from 19.7 percent at the end of December 2024 to 12.58 percent at the end of 2025, according to Saamoi, however they were still above the legal threshold, suggesting persistent issues with asset quality. However, during the quarter, private sector credit increased by 3.8%.
The IMF target was exceeded by Liberia’s merchandise trade surplus of 0.2 percent of GDP, he added, thanks to higher export earnings; remittance inflows increased to 4.1 percent of GDP, strengthening exchange rate stability; and gross international reserves increased by 3.8 percent to US$575.5 million.
Despite a slight appreciation of the Liberian dollar during the quarter, the MPC acknowledged temporary depreciation pressures in early 2026 due to elevated foreign exchange demand for post-festive restocking, but stressed that such pressures are expected to be short-lived.
Following its discussions, the Committee unanimously decided to maintain the reserve requirement ratios at 25 percent for Liberian dollars and 10 percent for U.S. dollars, the monetary policy rate at 16.25 percent, and the interest rate corridor at plus 2.5 percent and minus 7.5 percent around the policy rate, the CBL director added.
He stated, “The MPC reaffirmed its commitment to transparency, accountability, and evidence-based policymaking, noting that monetary policy focus will increasingly shift toward consolidating gains and supporting stronger real sector recovery for inclusive growth as stability is gradually restored.” The next meeting of the Monetary Policy Committee is set for April 27, 2026, he said.
Reported by: Prince Saah
