The report came through a press release from the Monetary Policy Committee (MPC) of the Bank of Central African States (BEAC), following the recent meeting held in Yamena, Chad, to look at the economic and monetary situation in the Economic and Monetary Community of Central Africa (CEMAC), and the short-term forecast.
The press release indicates that the GDP in CEMAC countries will show a real growth rate of 2.5%, against 0% in 2017; a rate of inflation lower than the community threshold of 1.6%, in comparison with 0.9% in the previous year; a reduction in the budget deficit (excluding grants) of up to 0.3% of the GDP, against 4.3% in 2017, and a recovery in the hedging rate for the currency to 60.7%, against 57.5% in 2017.
Taking into account the macroeconomic forecast for the subregion, and having examined the various factors affecting monetary and financial stability in the CEMAC zone, the MPC decided to maintain interest rates; the interest rate for tenders at 2.9%; penalisation for banks at 7.0%, and the reserve requirement rate is 0.05%.
In this the second ordinary meeting of 2018, under the presidency of Abbas Mahamat Tolli, Governor of BEAC, it was decided to abolish the national treasury anticipation rate in accordance with new legal provisions.
Finally, the MPC took note of the state of the achievements regarding the external position of the CEMAC States adopted in the session in March 2017, and urged the Central Bank to continue without delay with the financing of the remaining measures.
Source: Equatorial Guinea Press and Information Office