MONROVIA, Liberia, July 15, 2026 — The Central Bank of Liberia (CBL) has reduced its monetary policy rate by 25 basis points to 16 percent, citing moderate inflation, stronger international reserves and resilience in the financial sector.
The CBL’s Monetary Policy Committee announced the decision following its July 15 meeting. The reduction signals a gradual easing of monetary policy and could lower borrowing costs if commercial banks transmit the cut to customers.
The committee maintained its inflation target at 4.4 percent, with a tolerance band of two percentage points in either direction. It said the target is intended to protect consumers’ purchasing power by limiting sharp increases in the prices of food, transportation and other essential goods.
The committee also kept reserve requirements unchanged at 25 percent for Liberian-dollar deposits and 10 percent for United States-dollar deposits. The requirements are intended to ensure that commercial banks maintain sufficient liquidity and remain financially stable.
According to the CBL, lower borrowing costs could improve access to credit for farmers, market traders and small and medium-sized enterprises seeking to expand their operations.
However, the extent to which customers benefit will depend on whether commercial banks reduce their lending rates and expand credit to productive sectors.
The Bank acknowledged that high levels of non-performing loans remain a challenge to credit expansion, despite commercial banks maintaining strong capital and liquidity buffers.
The CBL said stable inflation, exchange-rate conditions and stronger reserves could also make the prices of imported commodities, including rice, fuel and building materials—more predictable.
Liberia’s economy grew by an estimated 5.5 percent during the second quarter of 2026, supported by mining, agriculture, recovering manufacturing activity and expansion in the services sector, according to the Bank.
The committee expects economic growth to continue at a similar pace during the year, with inflation projected to moderate further.
It nevertheless warned that global conflicts, fluctuations in commodity prices and pressures on external financing could affect the outlook.
The next meeting of the Monetary Policy Committee is scheduled for October 8, when it will reassess economic conditions and determine whether further policy adjustments are necessary.
