The Governor of the Central Bank of The Gambia, Mr. Buah Saidy, announced today that the Monetary Policy Committee (MPC) has reduced the Monetary Policy Rate (MPR) by a full percentage point to 16%, marking the first rate cut in over two years.
Speaking at the release of the MPC’s December decision, Governor Saidy stated: “After careful assessment of domestic and external developments, the Committee concluded that the balance of risks to the inflation outlook is now tilted to the downside. With domestic inflation falling to 7.0% in October – the eighth consecutive month in single digits – and global inflationary pressures continuing to moderate, we have the policy space to ease monetary conditions to support economic growth while keeping inflation expectations firmly anchored.”
The Governor highlighted that The Gambia’s economy demonstrated resilience in 2024, with real GDP growth revised upward to 5.6%, and maintained the Bank’s projection of 6.4% expansion in 2025, driven by robust performance in services, construction, and agriculture, and by sustained public and private investment.
“Remittance inflows, tourism receipts, and a surge in exports have significantly improved our external position,” said Saidy. The current account deficit narrowed to 2.8% of GDP in the first nine months of 2025, while gross international reserves stood at US$493.1 million (4.4 months of import cover) at the end of October.
The Dalasi has remained broadly stable, and the domestic foreign exchange market recorded turnover of US$2.4 billion in the first three quarters of the year. Private remittances reached US$638.4 million during the same period.
Governor Saidy also emphasised the continued soundness of the banking sector, with capital adequacy at a strong 25.1% and liquidity comfortably above regulatory requirements.
Concluding his statement, the Governor reaffirmed the Central Bank’s commitment: “The Committee stands ready to take further measures as necessary to ensure price stability and sustainable economic growth. Today’s decision reflects our confidence in the underlying strength of the Gambian economy and our determination to support the recovery while guarding against any resurgence of inflationary pressures.”
The next MPC meeting is scheduled for February 2026.
