Monrovia – The Central Financial institution of Liberia (CBL) has introduced its choice to keep up the Financial Coverage Fee (MPR) at 17.25%, a strategic transfer to stabilize costs, curb inflation, and defend the Liberian greenback amid ongoing financial pressures.
“We perceive the strain rising costs place on Liberian households. By holding the coverage fee regular, we’re working to maintain inflation in test and make sure that the Liberian greenback stays steady. That is about defending the on a regular basis citizen’s capacity to afford primary items and providers,” stated Govt Governor Henry F. Saamoi throughout the official studying of the CBL’s Financial Coverage Communiqué for the third quarter of 2025 on Wednesday, July 23.
The choice was reached on the Financial institution’s third Financial Coverage Committee (MPC) assembly held on July 16, as a part of its tight financial coverage stance geared toward anchoring inflation expectations, preserving macroeconomic stability, and safeguarding client shopping for energy.
What It Means for Liberians
By holding the MPR at 17.25%, the CBL seeks to include inflationary pressures and keep relative alternate fee stability. Whereas borrowing prices stay excessive, this coverage helps protect the worth of financial savings and shields the common Liberian from fast value hikes on necessities like meals, gas, and transportation.
The Financial institution additionally maintained its different financial instruments together with rate of interest hall: Unchanged at +2.5 and -7.5 proportion factors across the MPR and reserve necessities which stay at 25% for Liberian greenback deposits and 10% for U.S. greenback deposits.
Inflation Slows, Development Regular
Governor Saamoi famous optimistic financial developments, together with a lower in inflation from 12.5% to 11.1% within the second quarter of 2025 and financial development of 4.3%, maintaining the nation on observe to fulfill its 5.6% annual development goal.
Moreover remittances elevated by 11.4%, contributing to alternate fee stability. The banking sector stays steady, although non-performing loans (NPLs) are nonetheless excessive at 26.7%.
“We’re inspired by indicators of financial development and easing inflation, however international uncertainties and falling export costs require vigilance,” Governor Saamoi added.
Meals Costs Drop as Roads Enhance
Governor Saamoi additionally credited improved street infrastructure for a decline in home meals costs, particularly native produce, noting that higher entry to markets is lowering supply time and positively influencing pricing.
“We should commend the central authorities’s efforts in street connectivity. That is permitting farmers to deliver their items to market sooner, which helps decrease costs,” he acknowledged.
Coverage Reforms and Future Plans
The CBL is encouraging higher use of the Liberian greenback in home commerce and selling adoption of the Pan-African Fee and Settlement System (PAPSS) to facilitate cross-border commerce in native forex—lowering dependency on the U.S. greenback and minimizing dangers tied to bodily money.
“We’re dedicated to constructing a resilient financial system that works for all Liberians. Meaning making powerful however crucial selections at present to make sure a steady tomorrow,” Governor Saamoi affirmed.
Ngafuan Urges Motion and Reform
Finance and Growth Planning Minister Augustine Ngafuan, talking on the occasion, praised the CBL’s efforts whereas stressing the necessity for stronger execution, cooperation, and monetary sector reforms.
“We should execute. We should ship. And we should ship on time,” Ngafuan stated, calling for a unified method between fiscal and financial establishments to handle Liberia’s financial challenges.
Whereas acknowledging the moderation in inflation resulting from easing international meals and gas costs, he warned of looming dangers tied to declining international costs for Liberia’s key exports—rubber, cocoa, and palm oil.
Ngafuan additionally hailed the launch of PAPSS as “quietly revolutionary,” saying:
“If somebody in Liberia pays for items in Ghana with out utilizing U.S. {dollars}, that’s not simply comfort—it’s transformation.”
He introduced plans for follow-up engagements with the Liberia Bankers Affiliation to align the monetary sector with nationwide improvement targets.
“We should be certain that the banking system is not only watching us wrestle. Their effectivity is our effectivity,” Ngafuan concluded.
