The Monetary Policy Committee (Cpm) of the Central Bank of West African States (Bceao) has
decided to keep its key rates unchanged following its third ordinary meeting of 2019, held this
Wednesday, September 4 at the headquarters of the issuing institute in Dakar.
This decision, which interests investors and economic players as a whole as well as the sector
banking stems from an analysis following the main developments that have marked the economic situation
international and regional over the recent period.
To this, we read in the press release read by Mr. Toussaint Damoh, Director of the Economic Situation and
monetary analyzes of the BCEAO, are added the risk factors that could weigh on the outlook for the future.
medium term inflation and economic growth in the Union.
Thus, as for previous sessions, the body chaired by Mr. Tiémoko Meyliet Koné decided to
maintain unchanged the minimum interest rate for bidding on call for tender operations for the injection of
liquidity at 2.50 and the marginal lending window interest rate at 4.50%.
Before specifying that the reserve requirement coefficient applicable to banks in the Union remains fixed
at 3.0%.
Reinforced dynamism of economic activity, a projected growth rate of 6.7%
The Monetary Policy Committee informs that, in terms of the internal situation, the dynamism of activity
economic growth in the Union, observed since the beginning of the year, strengthened in the second quarter of
the year.
This body, chaired by Mr. Koné, Governor of the BCEAO, indicates that the rate of increase in the
GDP, in real terms, came out at 6.6%, after 6.4% the previous quarter.
Before adding that for the whole of 2019, according to the Central Bank, economic growth
of the Union is expected at 6.7% against an achievement of 6.6% in 2018.
At the same time, it is noted that the execution of the financial operations of the Member States of the Union,
during the first six months, was marked by a reduction in the budget deficit compared to
the same period of the previous year.
In relation to GDP, we read in the press release, the budget deficit, on a commitment basis, including grants,
stood at 1.8% in the first half of 2019, compared to 2.1% a year earlier.
In view of these performances, confides the same source, the Budgetary Monetary Policy Committee
encourages the States to continue the efforts undertaken to contain the budget deficit to 3.0% of GDP in the
maximum in 2019, in line with community objectives.
An inflation rate of 1.3% projected over the 24-month horizon
In its panoramic reading made during its present meeting in Dakar, the CPM noted that the situation
monetary policy in the WAEMU was marked, during the second quarter of 2019, by an increase in the money supply, attributable to the recovery of credits to the economy and the increase in foreign assets
net.
Under this register, this body emphasizes that the Union's foreign exchange reserves have been consolidated,
thus ensuring 5.0 less imports of goods and services against 4.9 months at the end of March 2019.
On the money market, informs the CPM, interest rates have, on the whole, relaxed. The rate
quarterly average of the money market came out at 2.70% against 4.50% three months earlier.
The content of the press release also makes it known that examining the situation of inflation in
the Union, the Committee noted the drop in prices in the second quarter of 2019.
According to him, the general level of consumer prices fell by 0.3% compared to the same quarter.
of 2018.
Before explaining that this situation is linked to the fall in cereal product prices, due to a
satisfactory market supply.
The same source thus indicates that on the horizon of twenty-four months, the inflation rate is projected, by the
Central Bank, at 1.3%, in line with the price stability objective pursued by the BCEAO.
Previously, in international commodity markets, the CPM noted that commodity prices
basic products exported by the countries of the Union have experienced contrasting trends between the first and the
second quarter of 2019.
This body thus notes that price drops were recorded for cashew nuts (-23.5%), oil
palm kernel (-17.2%), robusta coffee (-7.1%) and cotton (-4.2%).
On the other hand, continues the CPM, increases were noted for oil (+8.8%), rubber
(+6.5%) and cocoa (+5.0).
Let us recall that this last sub-sector was shaken by movements noted on the positions of the Côte
and Ghana who intend to harmonize their positions on the international cocoa market and to derive
maximum profit.