DAKAR (Reuters) – Sierra Leone’s central bank has raised its key monetary policy rate by 100 basis points to 17%, warning that inflationary pressures in the West African nation were expected to remain high until the end of the year, it said in a statement.
Headline inflation accelerated to 29.47% in July before moderating to 28.15% in August, mainly due to a drop in non-food-related inflation.
“The economy remains in an environment of stagflation,” the bank said in a statement on its website dated Oct. 3.
It added that domestic economic activity remained subdued and was expected to remain so in 2023.
“Consequently, real GDP growth is projected at 3.6% percent and 3.4% in 2022 and 2023, respectively,” it said.
(Reporting by Bate Felix in Dakar; Editing by Sofia Christensen and Matthew Lewis)
