The Central Bank of West African States (BCEAO) held its final Monetary Policy Committee (MPC) meeting of 2025 on Wednesday. One of the key decisions was to maintain its key interest rate. "The key interest rate remains at 3.25%, and the marginal lending rate at 5.50%," announced BCEAO Governor Jean-Claude Kassi Brou.

 

The CPM based its analysis on several factors, including the latest data related to the economic, monetary and financial situation in the region and internationally.

Domestically, growth is currently robust. For the third quarter of 2025, it is projected at around 6.6%. "This is very strong growth. In the second quarter, it was 6.4%. When we project to 2025, we have growth of 6.7%," says the Governor of the BCEAO.

 

And this solid growth is driven by virtually all sectors. "The agricultural sector is experiencing strong growth with a very good harvest," he emphasizes. As for hydrocarbons, their production has increased by 25%. "We are practically on track to reach a production of over 240,000 barrels per day by 2025. That's significant progress," he notes. Alongside this, there are also contributions from the gold mining, manufacturing, and service sectors, among others.

 

Furthermore, growth is adequately financed by the banking sector. "We have growth in credit to the economy, driven by the banking sector, which is increasing by 6%. It has increased by nearly 1700 billion year-on-year," emphasizes Jean-Claude Kassi Brou.

 

The other good news is that inflation at the EU level has fallen sharply. In the third quarter of this year, its rate was almost negative (-1.3%). For 2025, inflation is expected to be around 0.2%. This situation is due to lower prices for imported goods, combined with a good agricultural season that ensured a good supply of local produce to the markets.

 

Furthermore, the union's external trade has also moved in the right direction. The current account deficit for 2025 is expected to be around 2%. "A year ago, the deficit was at 7%. And that's a very positive development. It means that our trade, overall, is on the right track," notes the Governor of the BCEAO.

 

As for the international environment, the International Monetary Fund (IMF) is forecasting growth of 3.2% for this year, and trade tensions appear to be easing.

 

However, Jean-Claude Kassi Brou points out that there are still risks. These are linked to uncertainties surrounding customs tariffs and international trade tensions. They are also linked to the impact of climate change, security issues in the sub-region and specifically in certain countries of the Union, etc.

 

"And we are paying close attention to developments in the regional financial market, with the need to ensure that we have stability, because that is somewhat the foundation of our union," he says.

 

And taking all these aspects into account led to the decision to maintain the key interest rate and the marginal lending rate.