The Central Bank of Liberia (CBL) has announced a one-percentage-point reduction in its key monetary policy rate from 17.25 percent to 16.25 percent signaling renewed confidence in the nation’s improving economic outlook and easing inflationary pressures. The decision was made following the quarterly meeting of the Monetary Policy Committee (MPC) held on October 6, 2025, and was announced by Executive Governor Dr. Henry F. Saamoi. Governor Saamoi explained that the adjustment reflects the Bank’s commitment to supporting sustained economic growth while maintaining price stability.
“Liberia’s economy is projected to expand by 4.6 percent this year,” he said, “driven largely by increased gold earnings, stronger export performance, and steady inflows of remittances.” According to the Governor, inflation has declined sharply from 11.1 percent to 6.1 percent owing to reduced food and import prices. “This improvement in the inflation outlook provides scope for a cautious easing of monetary policy,” Dr. Saamoi stated. The CBL projects inflation to remain around 6 percent over the near term, though the Governor cautioned that temporary seasonal increases could occur during the Christmas period. Highlighting further signs of economic resilience, Governor Saamoi reported that the exchange rate has remained stable, with the Liberian dollar appreciating by 9 percent against major foreign currencies.
For the first time in several years, Liberia recorded a modest trade surplus, while gross foreign reserves climbed to US$544.8 million, reflecting improved external sector performance. On the domestic front, Dr. Saamoi assured that the banking sector remains sound, noting that commercial banks are well-capitalized, with declining levels of non-performing loans and higher liquidity reserves. He commended the Government of Liberia for its prudent fiscal management, timely debt servicing, and disciplined expenditure controls all of which have contributed to overall macroeconomic stability.
The MPC also resolved to maintain the existing reserve requirements for commercial banks 25 percent for Liberian dollar deposits and 10 percent for U.S. dollar deposits. The Committee pledged to continue monitoring inflation trends, liquidity conditions, and global economic developments to ensure monetary policy remains responsive and effective. “The Central Bank remains committed to promoting a stable financial system that supports inclusive growth and strengthens public confidence in the Liberian economy,” Governor Saamoi concluded.
