Central Bank of The Gambia Cut Rate 100bps to 13.00%

The Central Bank of The Gambia cut its rediscount rate by 100 basis points to 13.00% from 14.00% previously, and left the reserve requirement ratio unchanged at 12%.  The Bank said: "Taking the above factors into consideration, including the inflation outlook and the lack of demand pressures from the slowing of the domestic economy, the MPC has decided to reduce the policy rate by 1.0 percentage point to 13 percent. The expectation is that other interest rates, particularly lending rates, would be reduced."

Gambia reported headline inflation of 4.4% in December, and 4.1% in September 2011, compared to 5.8% in December and 6.2% in September 2010.  The Bank said "Inflation is expected to remain in single digit in 2012 predicated on prudent implementation of monetary and fiscal policies as well as the easing of global food prices."  The Gambian economy grew at a pace of 5.4% in 2011, compared to 6.1% in 2010.  The Gambia's currency, the Gambian Dalasi (GMD), last traded around 30.30 against the US dollar.

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