The BCEAO announced in a press release a 50 basis point drop in its key rates.

The Central Bank of West African States specifies that this decision was taken by its Monetary Policy Committee (CPM) on Monday, during its second ordinary meeting for the year 2020. This meeting was organized by videoconference, under the chairmanship of Tiémoko Meyliet Koné, Governor of the BCEAO.

"Noting that the recovery plans put in place by the States and the gradual easing of travel restrictions should lead to a restart of the productive apparatus, the members of the CPM have decided to support this dynamic, by lowering by 50 points the base rates of the Central Bank,'' the statement explains.

During its meeting, the CPM also announced that the minimum interest rate for bidding on liquidity injection tender operations will be reduced from 2.50% to 2.00%.

In the same way, “the interest rate of the marginal lending window is reduced from 4.50% to 4.00%”, indicates the CPM, specifying that “this decision comes into force from June 24, 2020” '.

After noting that "the situation of constitution of compulsory reserves by banks remains comfortable", the Committee indicates that it "decided to maintain unchanged the coefficient of compulsory reserves applicable to banks in the Union, which remains fixed at 3.0% ''.

During its meeting, the CPM "reviewed the main developments in the international and regional economic situation during the recent period, as well as the risk factors that could affect the medium-term outlook for inflation and economic growth in The union''.