The Central Bank of Liberia (CBL) has announced that it will maintain the Monetary Policy Rate (MPR) at 17.25%, a key decision aimed at keeping inflation (the rate at which prices rise) under control and protecting the value of the Liberian dollar. This means the Bank is continuing its tight monetary policy stance to help ensure that prices for everyday goods—like rice, fuel, and transportation—don’t rise too quickly.
This decision was made during the Bank’s third Monetary Policy Committee (MPC) meeting of the year, held on July 16. The MPR is the interest rate at which the CBL sells its instrument, the CBL bills, to commercial banks and retail investors, and it influences how much banks charge for loans and pay on savings. By keeping the MPR high above the inflation rate, the Bank is signaling its commitment to fighting inflation and maintaining economic stability.
“We understand the pressure rising prices place on Liberian households,” said Executive Governor Henry F. Saamoi. “By holding the policy rate steady, we are working to keep inflation in check and ensure that the Liberian dollar remains stable. This is about protecting the everyday citizen’s ability to afford basic goods and services.”
What This Means for Ordinary Liberians
For ordinary Liberians, a steady MPR helps slow down rising prices and keeps the Liberian dollar more stable against the U.S. dollar. While borrowing may remain expensive, this policy helps protect the purchasing power and savings of ordinary Liberians from being eroded by inflation.
The CBL also kept other key measures unchanged:
The interest rate corridor remains at +2.5 and -7.5 percentage points around the MPR.
Reserve requirements for banks stay at 25% for Liberian dollar deposits and 10% for U.S. dollar deposits.
These decisions are part of a broader strategy to manage inflation, support the Liberian dollar, and ensure that the banking system remains strong and responsive.
Economic Highlights
Inflation slowed to 11.1% in the second quarter, down from 12.5% earlier this year.
Economic growth for the 2nd quarter of 2025 stood at 4.3%, with hopes of hitting the 5.6% annual projected target.
Remittances rose by an estimated 11.4%, helping to stabilize the exchange rate.
The banking sector remains strong, though bad loans (non-performing loans) are still a concern at 26.7%.
“We are encouraged by the signs of economic growth and the easing of inflation,” Governor Saamoi added. “But we remain cautious. Global uncertainties and falling export prices mean we must stay vigilant and proactive.”
Looking Ahead
The CBL is urging more use of the Liberian dollar in everyday transactions including the usage of the Pan African Payment and Settlement System (PASS) at any commercial bank. This system allows for importation using the Liberian dollar. It is also encouraging exporters to route earnings through local banks to boost foreign currency reserves. These steps are vital to strengthening the economy and reducing reliance on the U.S. dollar.
“We are committed to building a resilient economy that works for all Liberians,” said Governor Saamoi. “That means making tough but necessary decisions today to secure a more stable tomorrow.”
The Bank reassures the public that it will continue to monitor economic conditions closely and act when needed to protect stability and support growth.
The reading of the Communique on Wednesday, July 23, was attended by the Minister of Finance and Development Planning, Hon. Augustine K. Ngafuan, stakeholders of the commercial banking sector, business community, civil society organizations, students, and journalists
Read the full MPC Communique here.