By: Stephen N. Sonpon
The Central Bank of Liberia (CBL) has announced that it will maintain the Monetary Policy Rate (MPR) at 17.25%, a key decision aimed at keeping inflation (the rate at which prices rise) under control and protecting the value of the Liberian dollar.
According to the CBL, this means the Bank is continuing its tight monetary policy stance to help ensure that prices for everyday good like rice, fuel, and transportation don’t rise too quickly.
Reading the Monetary Policy Communiqué for the just-ended quarter of 2025 at the CBL Wednesday, the Governor Henry Saamoi said, this decision was made during the Bank’s third Monetary Policy Committee (MPC) meeting of the year, held on July 16.
Central Bank of Liberia Executive Governor Saamoi indicated that the Monetary Policy Rate is the interest rate at which the CBL sells its instrument, the CBL bills, to commercial banks and retail investors, and it influences how much banks charge for loans and pay on savings.
He added that by keeping the Monetary Policy Rate high above the inflation rate, the Bank is signaling its commitment to fighting inflation and maintaining economic stability.
“We understand the pressure rising prices place on Liberian households,” said Executive Governor Saamoi. “By holding the policy rate steady, we are working to keep inflation in check and ensure that the Liberian dollar remains stable.
This is about protecting the everyday citizen’s ability to afford basic goods and services”, he told the gathering.
He stated that for ordinary Liberians, a steady MPR helps slow down rising prices and keeps the Liberian dollar more stable against the U.S. dollar.
While borrowing may remain expensive, this policy helps protect the purchasing power and savings of ordinary Liberians from being eroded by inflation.
He stated further that the CBL is urging more use of the Liberian dollar in everyday transactions including the usage of the Pan African Payment and Settlement System (PASS) at any commercial bank.
According to him, the system allows for importation using the Liberian dollar, noting that It is also encouraging exporters to route earnings through local banks to boost foreign currency reserves.
Speaking further, he pointed out these steps are vital to strengthening the economy and reducing reliance on the U.S. dollar.
“We are committed to building a resilient economy that works for all Liberians,” said Governor Saamoi. “That means making tough but necessary decisions today to secure a more stable tomorrow.”
Meanwhile, The Bank reassures the public that it will continue to monitor economic conditions closely and act when needed to protect stability and support growth.
