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The Bank of Sierra Leone (BSL) has in their recent Monetary Policy Statement (MPS) warned that inflation will continue to rise in the country.
The Central Bank said that the inflation rate is expected to rise because key factors like the “protracted effect Ukraine-Russia War, tight global liquidity conditions” and the depreciation of the local currency (Leone).
The Bank said inflation rate rose from 37.1 percent in December 2022 to 42.7 percent in February this year – a 5.6 percent growth in less than three months.
Economist have said that if inflation growth continues at this pace, the country will record at least a growth rate of 15 percent.
The Bank’s MPS also stated that the International Monetary Fund (IMF) that global growth slowed from 3.4 percent in 2022 to 2.9 percent in 2023 but will improve next year by 0.2 percent.
The Central Bank also noted that the country’s domestic economy suffered from “multiple supply shocks, exchange rate depreciation and associated rise in prices”. Calculation of this activity also indicated that there was drop of 1.3 from last year to this year.
Conclusively, the Central Bank’s MPC noted that inflation is the most important issue affecting the country’s economy. They noted that the rising cost of living has reduced the welfare of households thereby posing threat to macroeconomic stability.
The bank in tandem with the recent economic trend but certain measures in place. They announced that Monetary Policy Rates (MPR) will be at 18.75 percent, Standing Deposit Facility Rates (SDFR) at 12.75 percent and Standing Lending Facility Rates (SLFR) at 21.75 percent.
Local economists have noted that Sierra Leone’s economy continue slump despite the Government sending the Central Bank Governor on an indefinite leave.
The position is at current being occupied by one of his deputies, Dr. Ibrahim L. Stevens.
