At the recent meeting of the Monetary Policy Committee of the Central Bank of Congo (BCC), important decisions were taken regarding the maintenance of a restrictive monetary policy. This orientation is part of an improving economic context for the year 2024, despite the persistent challenges related to ongoing conflicts and the MPOX pandemic.
One of the notable advances concerns the decline in inflation, which fell to 10.5% in annual cumulative terms at the end of October 2024, compared to 19% in the same period the previous year. This decrease reflects a slowdown in the rise in prices, thus providing some respite to the purchasing power of Congolese households.
Furthermore, the depreciation of the Congolese franc has remained at a moderate level, with a cumulative rate of 6% since the beginning of the year, compared to 19.8% in October 2023. This relative stability of the exchange rate helps to limit fluctuations in the prices of imported products, thus supporting the country’s trade.
International reserves have also improved, reinforced by good export performance and substantial financial contributions from development partners. This consolidation of the DRC’s external position aims to strengthen its resilience to economic shocks and stabilize its macroeconomic framework.
To consolidate this positive momentum, the BCC has decided to maintain its restrictive monetary policy, deemed essential in this end-of-year period marked by sustained domestic demand. Maintaining the key rate at 25% reflects the desire to contain inflation by limiting access to credit.
At the same time, the mandatory reserve ratios, which determine the share of deposits that banks must keep without granting them as credit, remain unchanged. These ratios remain set at 12% for sight deposits in national currency, 0% for term deposits in national currency, 13% for sight deposits in foreign currency and 12% for term deposits in foreign currency.
The Monetary Policy Committee stressed the importance of cohesion between monetary policy and fiscal policy for the current results. However, it warned of the persistence of risks, both internal and external, which require the maintenance of rigorous economic policies and structural reforms. These reforms, integrated into the government’s economic program, are essential to strengthen macroeconomic stability and support sustainable and inclusive growth.
Ultimately, these measures taken by the Central Bank of Congo aim to consolidate the economic progress observed in 2024 and to strengthen the country’s capacity to face future challengesCoordination between different economic policies and the implementation of appropriate reforms are essential to ensure solid and sustainable growth, serving all Congolese citizens.