Sierra Leone Becomes First in Africa to Hike Rate This Year

4 Jan 2023 • 1 min read • 4,531 views • Post a comment

Sierra Leone’s central bank became the first in Africa and second globally after Israel to raise interest rates this year, according to Bloomberg.

Bloomberg noted that the rate is hiked by 125 basis points to contain surging inflation.

According to Bloomberg, a combination of factors, ranging from higher commodity costs to uncertainty around the Covid-19 pandemic, are keeping price pressures elevated in the in Sierra Leone.

“The Bank of Sierra Leone’s monetary policy committee hiked its key rate for a fifth straight meeting to 18.25% from 17%, bringing cumulative increases in just over a year to 425 basis points,” Bloomberg stated.