Tightening of monetary policy in the Democratic Republic of Congo: the Central Bank takes strong measures to counter inflationary pressures
In an economic context marked by both internal and external tensions, the Monetary Policy Committee (CPM) of the Central Bank of Congo has decided to further strengthen its monetary policy. During an extraordinary session held on August 8, the CPM announced an increase in the Central Bank’s key rate, from 11% to 25%.
The objective of this decision is to neutralize any excess liquidity and provide increased support for the country’s macroeconomic stability, given the uncertainties weighing on the global economy. Indeed, the CPM stressed that the global economic outlook remains subject to significant fluctuations due to geopolitical tensions and the repercussions of the war in Ukraine. These elements could have a negative impact on global economic activity and lead to an increase in imported inflation.
While recognizing that inflationary and exchange rate pressures have eased in recent weeks thanks to the corrective measures put in place by the monetary and budgetary authorities, the CPM underlined the importance of maintaining vigilance in the conduct of policy. monetary. He also called for strengthening coordination between monetary and fiscal policies in order to deal with external shocks, such as the war in Ukraine, which are putting strong pressure on the Congolese state budget.
This decision to tighten monetary policy therefore aims to prevent any inflationary outbreak and maintain the country’s economic stability. However, it is worth emphasizing that the global economic outlook remains uncertain, and it is essential to adopt a prudent and coordinated approach to confront the challenges ahead.
In conclusion, the Central Bank of Congo has taken strong measures by raising its key rate with the aim of stabilizing the economy in the face of inflationary pressures. This decision demonstrates the desire of the Congolese authorities to preserve the country’s macroeconomic stability in a global context characterized by growing uncertainties. It will be essential to closely monitor the evolution of the economic situation and continue to seek effective strategies to face future challenges.