BCEAO maintains key interest rates amid persistent price stability risks
via SeneNews2 min read
The Monetary Policy Committee MPC of the Central Bank of West African States BCEAO decided yesterday in Dakar to keep its key interest rates unchanged. This decision comes amidst persistent uncertainties regarding price stability within the Union. The main policy rate, at which the institution refinances commercial banks, remains at 3%, while the marginal lending facility rate stays at 5%. The reserve requirement ratio for credit institutions in the Union is also maintained at 3%. These rates have been in effect since March 16, 2026. According to BCEAO Governor and MPC Chairman Jean-Claude Kassi Brou, this stance reflects a cautious approach due to a fragile international environment, particularly persistent tensions in the Middle East, which could impact the macroeconomic balance of member countries. Inflation indicators remain contained, with the MPC reporting an inflation rate of -0.2% in the first quarter of 2026, following -0.8% in the previous quarter. For the entire year, inflation is projected to reach 1.6%, driven by expected increases in energy prices and certain imported food products. However, the monetary institution does not rule out an acceleration of prices if geopolitical tensions worsen. Economic activity in the Union remains dynamic, with growth estimated at 6.1% in the first quarter of 2026, compared to 6.5% in the previous quarter. This performance is supported by all sectors, especially extractive and manufacturing industries, as well as a strong agricul
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Following the announcement of Kiiraay – Les Patriotes Républicains, President Bassirou Diomaye Faye's new political party, French lawyer Juan Branco, who defended Pastef, has voiced strong opposition. Branco, in a statement on social media, denounced the move as a betrayal of Pastef's founding ideals of sovereign rupture. He cited an encounter where President Faye allegedly offered the US President a golf course, which Branco deemed humiliating and contrary to national dignity. Branco also linked Kiiraay's creation to the memory of Pastef activists who suffered during political repression, stating that no redemption is possible for President Faye. He recalled the deaths of men and children, imprisonment of women, and torture of students during that period, asserting that these acts will not be forgiven. This criticism follows previous sharp remarks by Branco against President Faye, including after Ousmane Sonko's dismissal as Prime Minister in May, when Branco referred to it as the greatest betrayal in Senegalese history. The creation of Kiiraay is seen by some within Ousmane Sonko's camp as an attempt by President Faye to distance himself from Pastef's political influence, exacerbating a deep rift between the two Senegalese executive figures.
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