Central Bank Holds Third Quarterly Review of 2025, Maintaining Policy Rate at 17%

Central Bank Governor Buah Saidy © Askanwi

By Haddy Ceesay

The Central Bank of The Gambia (CBG) has maintained the monetary policy rate at 17 percent following its quarterly Monetary Policy Committee (MPC) meeting held on Tuesday, 3rd September 2025, at the bank’s headquarters in Banjul.

Central Bank Governor General Buah Saidy told journalists that the decision was taken after assessing both domestic and global economic conditions. “Maintaining the current policy stance ensures that real interest rates remain positive, anchoring inflation expectations while providing stability for the financial system and the broader economy,” Saidy said.

The governor reported that the Gambian economy grew by 5.3 percent in 2024, driven by financial services, trade, construction, and mining. He added that the growth outlook for 2025 remains strong, with staff projecting GDP to expand by 6.4 percent, supported by remittances, public investment, and tourism.

On the external front, Saidy highlighted that private remittances totalled US$426 million in the first half of 2025, up 4.9 percent year-on-year. Foreign exchange market activity reached US$1.3 billion, while gross international reserves rose to US$502.4 million by the end of July, equivalent to 3.9 months of import cover.

The Dalasi, however, showed moderate depreciation between March and June 2025, weakening by 0.8 percent against the U.S. dollar and 7.6 percent against the Euro.

On fiscal operations, preliminary estimates indicated an improvement in the budget deficit, narrowing to D5 billion (3.5 percent of GDP) in the first half of 2025, compared to D6.4 billion (4.4 percent of GDP) a year earlier.

The financial sector also showed resilience, with the non-performing loan ratio falling to 8.9 percent, while the industry’s return on assets and equity stood at 3.7 percent and 16.7 percent, respectively. Microfinance institutions continued to expand, with assets reaching D9.3 billion and loans to micro, small, and medium enterprises growing by 37 percent.

The MPC reaffirmed its commitment to monitor both domestic and global risks closely, including commodity price volatility, trade fragmentation, and climate-related uncertainties.

The next MPC meeting is scheduled for 26th November 2025, with a policy decision to be announced on 27th November.