• BCEAO keeps key lending rate at 3.25% and marginal rate at 5.25%.

• UEMOA growth reaches 6.6% in Q3; inflation falls to -1.3%

• Central bank cites strong output, improved trade, and easing import costs

The Central Bank of West African States (BCEAO) kept its key interest rates unchanged on Wednesday after a regular meeting of its Monetary Policy Committee in Dakar.

The main rate at which the central bank lends to commercial banks remains at 3.25%, while the marginal lending rate stays at 5.25%, levels in place since June 16, 2025. The reserve requirement for banks was also maintained at 3%.

The BCEAO said the decisions were based on recent assessments of economic conditions, inflation trends and the region’s external balance.

Governor Jean-Claude Kassi Brou said economic growth in the West African Monetary Union (UEMOA) remained strong in the third quarter, with real GDP up 6.6% from 6.5% in the previous quarter. He said the expansion was driven by household consumption, public investment, a solid agricultural season and firm output in manufacturing, mining and services.

Private-sector lending rose 6% year-on-year at the end of September. Growth is expected to reach 6.7% in 2025, up from 6.2% in 2024, according to the governor.

Inflation dropped sharply to -1.3% in the third quarter, largely due to cheaper imported food and energy and improved domestic supply. Annual inflation is projected at 0.2%, down from 3.5% in 2024. The BCEAO warned, however, that upward risks persist due to geopolitical tensions and security challenges in the region.

External trade improved, supported by a 25% increase in petroleum output, stronger gold and cocoa prices and lower import costs for food and energy. External financing raised by member states also contributed to the improvement, the central bank said.

The Monetary Policy Committee said it would remain alert to risks that could threaten price stability or the region’s external position, and is prepared to act if needed to safeguard monetary and financial stability in the UEMOA.

Fiacre E. Kakpo